What is Involved in Filing Chapter 7 in Casa Grande, AZ?

by | Jul 7, 2014 | Law

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Almost everyone experiences the feeling of drowning in debt at some point. For some, escaping the financial undercurrent is as simple as cutting out that extra latte every morning, forgoing the weekly dinner and movie date and taking lunch to work rather than paying patronage to local restaurants. Others face greater difficulty in rescuing themselves, and find turning to bankruptcy to be a more viable solution for resolving their financial issues.

When filing Chapter 7 in Casa Grande AZ, the debtor must present information relevant to the situation. A detailed list of creditors is necessary to determine exactly how much is owed. A list of the debtor’s income must also be provided, including any earned income from employers as well as income from SSI, SSDI and child or spousal support. Any property of value must also be listed. Some belongings are allowed to be left out of the filing, but these vary by location and situation.

The debtor’s monthly expenses will be required as well, including shelter, utilities, transportation, medical care and other necessities. Expenses and income will be compared to determine how much the debtor is able to pay each month toward his total debt. While the proceedings can be handled without legal representation, hiring an attorney is advised. Mistakes on paperwork could lead to the filing being denied, and standing up against creditors without an attorney could prove to be intimidating.

Once the case is in motion, creditors will no longer be allowed to contact the person filing which lifts a great deal of stress from the debtor’s shoulders. A meeting will be scheduled between creditors who are part of the filing, the debtor and his attorney. Questions will be asked and answered, after which a plan will be developed for paying off the debts based on the amount owed and the debtor’s income after expenses have been deducted.

Judges will not attend this meeting, as doing so could influence their decision on the case. This final decision could be to allow the Chapter 7 in Casa Grande AZ to take place, to deny the proceedings, or to convert the case to one of the other chapters available. Bankruptcy does affect credit scores, but it also provides the relief some need to get out from under their debt and eventually make a fresh start. Click here to schedule a consultation.

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