Debt can often seem like a form of bondage to those in Hackettstown who suffer from it. Missed payments, late fees and other penalties can quickly add up to the point of one facing a seemingly insurmountable financial obstacle. In such cases, personal bankruptcy offers protection from further collection efforts, thus halting the growing liabilities compounding one’s troubles. Chapter 7 bankruptcy also offers the added advantage of allowing certain debts to be discharged. It is for this reason why this particular form of bankruptcy consistently ranks as the most popular, with the American Bankruptcy Institute reporting it comprising over 67 percent of all non-business bankruptcy filings from the second quarter of the 2018 fiscal year.
According to the website for the Federal Judiciary, when one first petitions the court to initiate a Chapter 7 case, they must include the following:
- A detailed breakdown of both their assets and debts
- A record of their current income and expenditures
- A statement explaining their current financial affairs
- Any unexpired leases or executory contracts they are involved with
In addition, they must include their most recent tax return (along with any information related to any tax years for which they have not yet filed a return).
If a review of one’s liabilities shows that they are primarily comprised of consumer debt, then they must also file a summary of their net monthly income. Details of any anticipated increases income (e.g., raises, job changes) that may occur during the time in which their bankruptcy cases are still open must also be included with this summary. On top of that, one must provide proof that they completed credit counseling within the previous 60 days. If a debt repayment plan was created in conjunction with that credit counseling session, it must also be submitted to the court.