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What to expect after chapter 7 discharge

Getting out of debt is not an easy task; talk less of getting out of bankruptcy. However, one of the common ways to file for bankruptcy is through filing a Chapter seven bankruptcy. In this type of bankruptcy, you’re willing to let go of all assets to settle your debts. While losing all assets doesn’t sound too great, at least you’ll be debt-free after you’ve been discharged. Here are some things you can expect after a chapter seven discharge;

  • Wait for the final report

A chapter 7 bankruptcy case is not easy to end; it follows due process. You have to get a trustee assigned to you. The trustee will then call for a meeting, popularly known as the 341 meetings of creditors. In this meeting, the trustee explains the state of your finances to each one of the debtors. This isn’t an enticing meeting to attend for most creditors, however. Once this meeting finishes, the trustee now presents a final report to the bankruptcy court. At this point, you can smell freedom. See here for the leading chapter 7 bankruptcy lawyers.

  • Ensure you get your discharge letter

Once the final report from the court gets accepted, the court gives a discharge order to discharge you of all debts covered under chapter 7 bankruptcy. At this point, you may feel satisfied and free; however, you shouldn’t forget to get a discharge letter. The court will have a discharge letter, after examining all debts related carefully, which will give you freedom. Of course, the discharge order and letter have to come after the meeting with creditors. Mostly, this letter will be issued sixty days after all creditors have held the 341 meetings.

  • Accept the rough ride ahead

Don’t fight it; starting a chapter 7 bankruptcy is not an easy task. First, you have lost almost every asset you own to pay all debts under the chapter 7 bankruptcy. More so, it doesn’t mean your total debts have been automatically cleared by chapter 7 bankruptcy. Debts like student loans, child support, among others, aren’t removed with a chapter 7 discharge. Your credit report may even show the history of bankruptcy for the next ten years. So you must first accept that it’s not going to be easy.

  • Take baby steps first

Losing everything can be very easy, but growing everything will take time, hard work, and determination.  You have to take steps little by little. Start with gathering all your bankruptcy-related documents. This will include all documents from when you filed for bankruptcy to the discharge letter. These documents will come in handy if you need another debt later.

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  • Meet with unpaid creditors and clear all outstanding debts

A chapter 7 bankruptcy will sell assets to pay debts in due process. The obligations which have security like a mortgage, for instance, get paid first. The unsecured debts that have no assets tied to them will come after the secured debts. Depending on your asset value, some debtors may end up not getting paid. You should make plans to meet with unpaid creditors with the hope of making peace. Additionally, you should clear all other debts not covered by the chapter seven discharge.

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