What Is A Bankruptcy Petition In Chapter 7?

After thoroughly analyzing Chapter 7 bankruptcy and other debt-relief options, you may decide that Chapter 7 is the right option for your financial situation. If so, one of the first steps you must complete is working on the bankruptcy petition. If you've never filed for bankruptcy before, you may have questions about the petition. What is it? What information do you need for it? If you have questions like this, here are the answers you may want to know before filing.

The Petition Initiates Your Bankruptcy Case

No matter what branch of bankruptcy you use, you will have to file a petition to start your case. The petition notifies the bankruptcy court of your intentions to use the bankruptcy process. It tells the court what branch you are using along with all your personal details. It also includes all the financial information about your case. Filing the petition for a Chapter 7 case doesn't guarantee that the court will approve the case and offer a discharge. It is, however, required to initiate the process.

How You Complete the Petition

Some people complete the petition through a do-it-yourself case, but most people hire a lawyer for help. Hiring a lawyer is the better option of the two choices, as it provides legal counsel through the process. If you decide to hire a lawyer, you will meet with him or her once or twice to prepare the petition.

During the meetings with your lawyer, he or she will ask you a lot of questions. A bankruptcy petition is long, difficult, and detailed, and your lawyer must make sure it's accurate and complete before filing it with the bankruptcy court. You shouldn't be surprised if it takes several hours for your lawyer to complete the petition with you present.

The Next Step

Filing the petition for a Chapter 7 case is typically the most complicated step in the process. After you file the petition, you will have to meet in court one time, but that is one of the few requirements for Chapter 7 bankruptcy cases. The hearing you must attend is called a Meeting of the Creditors. It is a necessary step in the process, and you must show up for it. Your lawyer will let you know of any other requirements you must complete for your case.

Would you like more information about Chapter 7 or another branch of bankruptcy? If so, meet with a bankruptcy lawyer at a law firm like Price James S & Associates today.