Black and Buono Blog

Chapter 7 bankruptcy ... by Anthony Buono

Perhaps one of the most challenging issues with filing for Chapter 7 Bankruptcy is making the decision to do so. You need to decide if it is really the right thing to do for yourself and your family. Chapter 7 filing means wiping out most or all of your debts, and it also means liquidating most of your assets. It is a drastic measure, and you want to take a deep breath and consider it carefully. It is a good idea to consult with an attorney who specializes in this area, and to talk with people who have gone through the process.

In most cases it is a good idea to hire a lawyer, take the time to choose one wisely. This is a time in your life where you will be feeling nervous and vulnerable, and you want someone guiding and representing you whom you can trust. Additionally, throughout the process, decisions will need to be made about which of your assets will be liquidated to pay creditors and which ones you will be able to keep. A lawyer can help you keep as many assets as possible, help you with all of the paperwork, and represent you in court.  

After you go through the chapter 7 processes your bankruptcy will be discharged. This takes about 3 months throughout which debtors are not allowed to contact you. Basically, “discharge” means that all of the debts that are listed in your filing will be removed.  After the discharge, it is your job over the next several years is to build good credit again. Remain patient, adopt good practices, and this can be done.

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