RHODE ISLAND CHAPTER 7 BANKRUPTCY LAWYER
WHAT IS CHAPTER 7 BANKRUTPCY
Chapter 7 bankruptcy is the most common type of bankruptcy. It is for people who simply cannot repay their debt even under the best of circumstances. In most cases, people filing for Chapter 7 bankruptcy do not have to repay any of their debts.
Chapter 7 bankruptcy is the best option for people who have suffered long-term unemployment or other loss of income, have unmanageable credit card or pay day loan debt , and for families who owe thousands of dollars of medical debt.
SHOULD YOU FILE CHAPTER 7 OR CHAPTER 13?
Your home mortgage and car loan will be treated differently under Chapter 7 or Chapter 13 bankruptcy. Providence Chapter 7 bankruptcy lawyer John Simonian will review your situation and explain whether Chapter 7 or Chapter 13 is the best way to reach your goals. Contact his office online or call 401-941-4800.
WHAT HAPPENS AFTER YOU FILE FOR BANKRUPTCY?
Immediately after you file bankruptcy, federal law imposes an “automatic stay” to stop your creditors from collecting on your existing debt. Filing also temporarily stops a home foreclosure proceeding.
The Bankruptcy Court Clerk will mail your creditors a notice of the bankruptcy filing within a few days. Until your creditors receive that notification, you may need to supply them with the docket number and date of your bankruptcy. Once they have been given notice, they must stop collection efforts or be liable for court sanctions.
The vast majority of people no longer hear from unsecured creditors once their bankruptcy petition is filed. Most of your debt payments are put on hold while your bankruptcy is pending. However, you should continue to pay your car loan and home mortgage if you plan to keep your car and home. Always continue to pay your day-to-day living expenses, like rent, groceries and utilities.
About 30 to 40 days after filing the bankruptcy petition, you will be required to attend a “Meeting of Creditors” or “Section 341(a) Examination.” There is no judge at this hearing, only the bankruptcy trustee in charge of your case. Creditors can attend and can ask you questions but they very rarely show up for such hearings. Most hearings last about 4 minutes, with the trustee asking you a few questions. (See a list of the questions most commonly asked at the Meeting of Creditors).
The success of your case will depend upon the written bankruptcy petition. You will work with Attorney Simonian to ensure that the petition is complete and accurate.
” Don’t let shame or fear keep you tied to unmanageable debt “
WILL YOU LOSE YOUR PROPERTY?
Federal and state law protects many kinds of personal property, including household goods, clothing, retirement funds, tools used for work, and MUCH more. Talk to Mr. Simonian if you have concerns about a particular piece of property that you want to be sure is protected. This may be a factor when choosing Chapter 13 bankruptcy or Chapter 7.
HOW LONG DOES CHAPTER 7 BANKRUPTCY TAKE?
Chapter 7 bankruptcy typically takes 3 to 4 months to complete and then all of your debts are forgiven. You can truly start again.