Facing money problems can be a scary thing for many people and filing a Chapter 7 bankruptcy case may be the only way out of debt. When you file this type of case, you are usually able to wipe out your individual debt and keep your property. It will protect you from harassing calls from creditors. Getting out from under debt and starting over will help relieve stress and financial worries.

Hiring a Lawyer

The first step in filing a Chapter 7 bankruptcy case is hiring a lawyer. You will want to find a lawyer that specializes in this area of law. This will ensure they are current on all local laws and court procedures regarding your case. The lawyer will help you gather the necessary paperwork and fill out all the needed forms. They will help you understand each step of the process to clear your debt. A lawyer will be able to tell you what you are able to file on and what is not covered in a case.

Pass the Means Test

The means test is a document that must be filled out when filing to erase debt. The means test was put in place in 2005 and is a calculation that everyone must pass successfully before they can file to erase debt. It is designed to see if you are able to afford to pay your debts. The test uses your income for the past six months. Your income is compared to the median income for your area. Your attorney will help you in filling out the forms.

Attend the Meeting of Creditors

You must attend a meeting of creditors, which the court issues. All of your creditors will be notified of this meeting and they have the right to be there. A trustee is in charge of this meeting and they will ask you some questions. Your lawyer will brief you on this procedure so you know what to expect.

Debt Discharged

Your debt will be discharged if the trustee or creditors have no objections to your case. The discharge will be given after the last day to object. The discharge will wipe out your debt and will stop creditors from trying to collect money from you that happened before filing your case.

Sometimes bad situations happen to good people. Being in debt for any reason is never a good experience. Filing a Chapter 7 bankruptcy case can help you erase you debt and get a fresh start. It is a way to help people who are burdened with too much debt. As hard as it may be to file, it is sometimes the only option.