Chapter 7 bankruptcy can be a complex process, but you can never do too much research to ensure that you’re prepared, and your attorney will be there to help guide you every step of the way. Here are some additional considerations for Chapter 7 bankruptcy:
- Adding creditors – If you realize after filing your petition that one or more creditors were forgotten or still must be listed, the court will allow you to add these creditors for a fee. Courts typically charge $26 to do so and you can add as many creditors as necessary for a single fee.
- Reaffirmation Agreement – Some creditors may need you to sign a “Reaffirmation Agreement,” and your attorney can obtain these documents for you. If you elect to reaffirm certain debts, meaning pay them off according to previous agreements in order to keep collateral, you will sign the agreement and continue making these payments. If you will not reaffirm, you will make arrangements with your attorney to surrender collateral. Also, do not sign any agreements you’ve received from somewhere other than your attorney’s office.
- Surrendering secured property –If you surrender secured collateral to a creditor, you may either return it yourself or have the creditor pick it up from your home. Your attorney can help you make these arrangements.
- Financial management course – You will need to complete this course in order to have your debts discharged. Your attorney can help you find a qualifying class, which typically has a fee of around $50.
- Tax returns –While your Chapter 7 bankruptcy is in effect in the state of Illinois, you should not file a tax return electronically or via Rapid Refund. If you do file while the case is open, you must enclose a note which states that you’ve filed for Chapter 7 and includes your case number and attorney’s name, number, and address.
