Sometimes arranging for a fresh start is the best possible way to start moving forward again. For debtors sinking under obligations that can no longer be met, consulting with a bankruptcy attorney can easily turn out to be the best move of all. Federal laws provide for a type of relief that helps millions of Americans get back on their feet every year. Understanding the basics of chapter 7 bankruptcy can clarify whether it might make sense to seek out some related advice.

Chapter 7 Enables Liquidation of Debts and the Ability to Start All Over Again

There are two types of bankruptcy that individuals in the United States commonly make use of. One of these, known as Chapter 13, revolves around the creation of a court-approved repayment plan that can lower the overall debt burden.

The other form of individual bankruptcy is designed to essentially wipe the slate clean, although a record of the process itself will remain behind on the debtor’s credit record for years thereafter. The steps involved in chapter 7 bankruptcy typically include:

Consultation. Most debtors get started with this type of bankruptcy by consulting with an attorney who understands the process and is ready to offer helpful advice. In some cases, it will become clear that better options exist, even for those who are facing heavy loads of debt. In many others, an attorney will be able to point out how Chapter 7 could make things easier, whatever the particular details.

Filing. Should a debtor decide to seek protection under Chapter 7 of the federal bankruptcy laws, it will then be necessary to file the required documents. This step can end up being more difficult than many debtors suppose, and it commonly trips up those who fail to seek legal representation. In addition to listing debts and the creditors to which they are owed, individuals seeking bankruptcy protection will need to identify their assets and highlight those they believe are exempt from liquidation under the law.

Meeting. Likely the single most momentous event in the average Chapter 7 process is a special meeting that includes representatives of all the debtor’s creditors. These parties will be allowed to object on any of a number of grounds, a fact that can make the value of having legal representation even clearer.

A Proven Way of Getting on with Life

While the Chapter 7 process should never be taken lightly, it has provided much-needed relief to many millions of Americans. Both deciding whether Chapter 7 could be appropriate and working through the process successfully is inevitably easier for those who have attorneys to rely upon.