Get Efficient Help From An Ontario Chapter 7 Bankruptcy Attorney
Chapter 7 Bankruptcy can provide a fresh start to those struggling under overwhelming debt. It is a legal process that lets people erase most of their unsecured debts. The process allows people to keep their exempt assets. It is designed for people who do not have the means to pay off their debts and typically involves a test based on income to determine eligibility. The process is often completed in several months, and at the end, most unsecured debts (such as credit card debt, medical bills, and personal loans) are erased.
Who Can File For Chapter 7 Bankruptcy?
As mentioned above, Chapter 7 is meant for people who cannot otherwise pay off their debts. Eligibility is determined based on your income using a “means test.” If you are eligible and approved, Chapter 7 Bankruptcy can erase many of your debts; however, certain debts may not be discharged. Debts like alimony and child support cannot be discharged in Chapter 7 Bankruptcy.
Frequently Asked Questions About Chapter 7 Bankruptcy
Below are answers to some common questions about Chapter 7 bankruptcy.
How will Chapter 7 bankruptcy affect my credit score?
A Chapter 7 bankruptcy typically causes an immediate decrease in your credit score, with the exact impact varying based on your pre-filing credit history. The bankruptcy filing remains on your credit report for 10 years from the filing date.
Many begin rebuilding their credit within 1-2 years after discharge by obtaining secured credit cards or small loans and making timely payments. The long-term effect of bankruptcy is often less damaging than continuing to miss payments on overwhelming debt. Many former bankruptcy clients report that freedom from debt collection and harassing calls provides peace of mind that outweighs credit score concerns.
How much debt do I need to have to file for Chapter 7 bankruptcy?
There is no minimum debt requirement to file for Chapter 7 bankruptcy. The decision to file should be based on your overall financial situation rather than a specific debt threshold. Some clients file with relatively modest debts when they see no realistic path to repayment due to job loss, medical issues or other financial hardships. Others with substantial debt may not qualify due to income limitations. The critical factors include the ability to repay debts and pass the means test, not the total amount owed.
How long does the Chapter 7 bankruptcy process take?
A typical case takes approximately 3-4 months from bankruptcy filing to discharge. The process begins with credit counseling, which must be completed before filing. After filing, you must attend a 341 meeting of creditors about 30-45 days later.
Assuming no complications arise, the court generally issues a discharge order about 60-90 days after this meeting. Certain factors can extend this timeline, including trustee requests for additional documentation, challenges to exemptions or creditor objections to discharge.
How quickly can I file for Chapter 7 bankruptcy to stop creditor actions?
With proper preparation, we can file your Chapter 7 bankruptcy case within days of your decision to proceed. Upon filing, the automatic stay immediately goes into effect, halting most collection activities, including lawsuits, wage garnishments, bank levies, utility disconnections and foreclosure proceedings. In emergency situations, we can prepare and file a bare-bones petition to establish the automatic stay quickly, then complete the remaining schedules and documentation within 14 days.
Contact An Experienced Ontario Chapter 7 Bankruptcy Lawyer
The Law Office of Curtis R. Aijala, APLC can assist you in filing for Chapter 7 bankruptcy. They can efficiently assess your situation, help you determine what is right for you and walk you through the entire bankruptcy process, ensuring all paperwork and documents are correct and submitted correctly. His staff speak Spanish and provide a high level of personal service with consistent communication.
Contact The Law Office of Curtis R. Aijala, APLC today to schedule a free initial assessment for efficient personal service and to learn more. Use the online contact form or call 909-983-0877 to get in touch.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.