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The greatest benefit of Chapter 7 is that it discharges debt
completely, briskly, and for low cost. Because of this highly desired
characteristic, most debtors prefer Chapter 7 over continued payments. For debtors who qualify under Chapter 7 requirements today,
these benefits remain intact. In most consumer cases, Chapter 7
debtors are not required to surrender property and a trustee auction sale
is a rarity. The final discharge hearing usually takes place 4 to 6
months after the case is filed, depending upon the volume of cases filed
in various jurisdictions.
New bankruptcy Chapter 7 requirement for credit counseling
Before filing, credit counseling is mandatory. All debtors must prove
completion of an approved course that provides credit counseling, budget
analysis, and recommendations regarding their financial health. Similar
to the availability of online debt collection training for collectors,
approved online credit counseling courses are widely available.
Dismissal of all bankruptcy cases filed under Chapter 7 and Chapter 13
is also mandatory if a debtors has not completed a required course
during the 6 months before filing a petition.
Preparing legal interview questions
Consumer bankruptcy attorneys usually provide free initial
consultations. During the meeting, debtors should ask legal questions
about Chapter 7, as compared to Chapter 13 and other non-bankruptcy
alternatives. The most successful debtors prepare legal questions well
in advance of the meeting, and target specific areas of concern.
Certainly, a little effort preparing legal interview questions goes a
long way toward insuring a fruitful consultation and, at a minimum,
debtors receive unlimited free legal bankruptcy advice for the hour.
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