What to expect when filing chapter 7?

Anonymous · ‎02-24-2022

Hello, I've decided to file bankruptcy because I have so much debt I can't afford to pay back. I stop paying on my accounts in 2018. So that left me with a bunch of collections and charge offs. I have some good accounts on my report and I also have an auto lease with BMW that I plan to keep.( yes I need my car) Im currently working for Uber eats to pay my bills no other income to report. My question is what should I expect when filing? What will they ask for? Im scared never thought I would have to go through this but it happens. Please share any details I should know or look forward to when filing..Any advice is appreciated. Thank You!

MileHigh96 · ‎02-25-2022

Find a good attorney. Having a bankruptcy lawyer that you feel comfortable working with helps A LOT. Usually the 1st meeting with an attorney is free, so you can shop around until you find one you're comfortable working with.

After that, it's paperwork. The lawyer will pull your credit reports, they'll want at least one year of tax returns, and they will want 3 months of bank statements IIRC. It does feel daunting, but it really isn't and a good attorney will explain everything and answer every question you have.

BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Ally Everyday Cash Back Mastercard (converted from Ollo Platinum Rewards Mastercard) $4800 CL (opened 7/21/21)

Mercury Mastercard $4360 CL (opened 7/23/21)

Upgrade Triple Cash Rewards Visa Card $17,500 LOC (opened 8/4/21)

PenFed Pathfinder Rewards $6000 CL (opened 11/9/21)

Dell Pay Credit (converted from Dell Financial Services account) $6500 CL (opened 12/6/21)

Capital One Kohls Visa (converted from Kohls store card) $3300 CL (opened 12/13/21)

Upgrade Cash Rewards Visa Card $7,000 LOC (opened 3/17/22)

Capital One Quicksilver MC (PC'd from a Platinum card) $3200 CL (opened 5/6/22)

Capital One Savor One MC $5000 CL (opened 10/20/22)

Merrick Bank Double Your Line MC $2500 CL (opened 11/1/22)

NFCU cashRewards Plus $28000 CL (opened 3/17/23)

Affinity FCU Pure Rewards Visa $1500 CL (opened 5/18/23)

Bread Cashback AmEx $10000 CL (opened 5/23/23)

Canvas CU Platinum Elite MC $3000 CL (opened 5/25/23)

NFCU Go Rewards Visa $23000 CL (opened 6/16/23)

Petco Pay Mastercard $5100 CL (opened 6/29/23)

My GM Rewards Card Mastercard $5500 CL (opened 8/1/23)

Denver Broncos Extra Point Visa $8500 CL (opened 12/8/23)

NFCU More Rewards AmEx $9000 CL (opened 2/8/24)

Ally Unlimited Cash Back Mastercard $3000 CL (opened 4/3/24)

Service Credit Union Everyday Visa $2500 CL (opened 8/19/24)

BECU Cash Back Visa $16000 CL (opened 8/21/24)

Closed accounts:

Mission Lane Visa - first starter card after discharge (opened 7/7/21 - closed 4/1/23)

Capital One Quicksilver MC (downgraded from a Walmart Rewards MC and transfered CL to older QS card) (opened 11/4/22 - closed 04/09/25)

Best Egg Visa (opened 05/17/22 - closed 04/14/25)

0/6, 3/12, 11/24 new accounts
TCL: $144.2K

Anonymous · ‎02-25-2022

@MileHigh96 wrote:
Find a good attorney. Having a bankruptcy lawyer that you feel comfortable working with helps A LOT. Usually the 1st meeting with an attorney is free, so you can shop around until you find one you're comfortable working with.

After that, it's paperwork. The lawyer will pull your credit reports, they'll want at least one year of tax returns, and they will want 3 months of bank statements IIRC. It does feel daunting, but it really isn't and a good attorney will explain everything and answer every question you have.

Ok, Thank You

Dirge · ‎02-27-2022

+1 on getting a lawyer. I know it seems like a lot of money (I paid $1100 when I filed Ch 7 in 2012) but they know which information you need and they come with you to the trustee hearing. I had over $225k in medical debt (the reason I was filing). At the trustee meeting the trustee questions every filer (at my hearing there were about 10 of us seated around a big table) and needs certain documentation. I was out of there in under 10 minutes from when she got to me - my lawyer handed her all the paperwork and she asked me about my housing (rental) and car (9 years old) and that was it.

I did have to borrow the $1100 attorney fee from family! My bankruptcy will be off my credit reports in June. It's been a hard road coming back, because filing for bankruptcy does limit you in a lot of things. But there was no way I could have ever paid off that medical debt. Good luck.