There are many forms of bankruptcy. Chapter 7 attorneys work for their clients to deal with the most common form of bankruptcy. This type of bankruptcy allows the client to liquidate their assets and, after the money from those assets has gone to pay off their debts, anything left unpaid is forgiven. If a corporation files for Chapter 7, all of its assets are sold off to pay for the debt, so with very rare exceptions, Chapter 7 spells the end of a business. For a private individual, bankruptcy can be a relief from mounting debt and getting a chance to start over.
Chapter 7 attorneys are essential to a person in filing bankruptcy. The government has issued new restrictions on who is permitted to file, including requiring filers to go to debt counseling and education. Debtors must also pass a test to be considered eligible for filing. This test is a very in-depth assessment of your situation. Your disposable income will be assessed in order to judge whether or not you are a candidate for bankruptcy.
Chapter 7 attorneys will file a petition on your behalf in the federal court. In addition, clients must provide a comprehensive list of all assets and liabilities. Also to be included is the client’s income, monthly spending amounts, bank statements, tax returns and any other requested documents. In short, a bankruptcy filer must prove they cannot pay back their debt. A good lawyer will help you understand what you need to have prepared and what information will help you best move forward. They will ensure no step gets missed.
Chapter 7 attorneys from Sonoma can give you all of the information needed, and to inform you if you qualify to apply for bankruptcy. Their knowledge will be invaluable to you as you try to move forward with this long and difficult process. If you are considering applying for bankruptcy, make sure you get assistance from a good chapter 7 attorney.