Top 10 Questions Asked About A DIY Bankruptcy

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 1. Will I lose all my belongings if I file a Chapter 7?

If the property is deemed to be exempt,  you will be allowed to keep said property during and after your bankruptcy is completed. In a Chapter 7 bankruptcy, property exemptions determine what items can remain in your possession, these items can include, but are not limited to, your home, vehicle, your pension, certain personal belongings, and may include other miscellaneous items. If there are any items that are deemed "non protected", the bankruptcy trustee may acquire nonexempt and unprotected assets and sell them to use the proceeds to pay certain holders of claims (creditors).

              ** Certain exemptions may be doubled if filing jointly**

2. What are the differences between a Chapter 7 and a Chapter 13?

A Chapter 7 bankruptcy filing does not involve the submitting of a plan to make any type of repayments to creditors as in a Chapter 13 bankruptcy. 

 The difference between Chapter 7 and Chapter 13 is that a Chapter 7 will allow the debtor to eliminate all dischargeable unsecured debt, whereas Chapter 13 is a court program that allows you to make payments to be made on those debts. This particular program is not meant for individuals looking to file bankruptcy under Chapter 13.

3. Should I file for a Chapter 7 bankruptcy?

Bankruptcy is a powerful legal tool in the United States that allows you to erase many debts, including credit card debt, medical debt, car loans, and payday loans. This allows people to create a fresh start and helps relieve the financial burden that they are under.

4. Is there a certain amount of debt to qualify for bankruptcy?

Qualifying for bankruptcy is not based on the amount of debt you have but rather the amount of your household income, the size of your family, and the availability of you to pay back that debt. 

5. Do I need a lawyer to file for a Chapter 7 bankruptcy on my own?

If you are filing a simple Chapter 7 bankruptcy, an attorney is not required, you can file pro-se.  This was the purpose of creating the Simple7bankruptcy.com . Our program simplifies the filing process for this type of bankruptcy, unlike some of the other available programs which require you to spend much more of your time and effort and may have you going through an abundance of pages and forms ( which in some cases may be in excess of 50 pages).  Our way is for you to fill out all the necessary bankruptcy forms, on your own, in a simple 9-tab process.  All without the legal jargon that those other do it yourself bankruptcy programs expose you to.  If you believe you have a complicated case, you may want to consult an attorney to go through all of your legal options before filing.

6. How does the bankruptcy process work?

For the person, or persons filing the bankruptcy petition, this involves filling out and completing all the necessary bankruptcy forms which are used to create your bankruptcy petition. Once your completed Chapter 7 petition has been filed with the courts, they will assign you a hearing date for your 341 meeting that you will need to attend. The meeting is referred to as a meeting of creditors because creditors are notified that they may attend and ask the debtor questions pertaining to assets or any other matter pertinent to the administration of the case.

At this meeting, you will get a court-appointed bankruptcy trustee who will review your petition to make sure all of the information you provided is true and that you are unable to pay back your debts. At this point, the Trustee would let you know if your debts are dischargeable. Its important to know that even if you're married, you and your spouse do not have to file jointly for Chapter 7 bankruptcy. If the debt is solely in one persons name only that person would be the one filing.

7. Can bankruptcy eliminate all of my debt?

Bankruptcy can be a powerful tool for debtors and can eliminate many types of debt. But it doesn't stop all creditors, or wipe out all of your obligations. Chapter 7 bankruptcy can eliminate most if not all of your unsecured debt. Such items as credit card balances, utility bills, medical bills, unsecured personal loans, and payday loans. You also do not get to pick and choose the debts that you want to enter into bankruptcy. Any and all any debts that you owe need to be listed in the petition.

            Debts that are not dischargeable

• Spousal or child support payments
• Alimony
• A debt arising out of fraud
• Any court-imposed fines and penalties including traffic and parking tickets
• Student loans: Dependent on circumstances concerning the loan
• IRS DEBT

8. Who will know if I file bankruptcy?

 When you file bankruptcy your creditors and the bankruptcy court will know, but your family, friends, and employer often do not have to find out. The bankruptcy court does not notify family or friends about your bankruptcy unless they are involved. But as with any official court proceedings, they are still listed as public record.

9. Will bankruptcy stop foreclosures or repossessions?

 In the end, a Chapter 7 bankruptcy will not prevent a foreclosure on your home. But it will put it on hold. Once you file for Chapter 7 bankruptcy, the bankruptcy court will issue an order for an automatic stay, which will suspend any foreclosure proceeding while your bankruptcy case is pending. 

10. Can bankruptcy stop all these collection calls?

The simple answer is yes. It is actually illegal for them to try and contact you if you have a Chapter 7 bankruptcy filed with the courts. The automatic stay filed by the courts requires creditors to stop harassment calls or attempts to contact you.