These days, thousands of families across the United States are dealing with significant financial concerns. So many people are losing their jobs, yet bills still keep piling up. With no income, debt can quickly snowball and become overwhelming. Florida residents who feel like they are drowning in debt with no way out may want to consider filing for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is also known as a liquidation, and it discharges most general unsecured debt. Examples of this are medical bills, personal loans and credit card debt. However, debts such as back taxes, student loans or child support cannot be discharged by Chapter 7 bankruptcy.
Without question, it can be tough to know when to consider filing for Chapter 7 bankruptcy. Here are a few scenarios that may indicate filing for bankruptcy would be a beneficial move.
- When debts equal more than half of the total yearly income.
- When debt affects essential aspects of a person’s life, such as sleep or relationships.
- When it would take five years or more to pay off debt, even when taking extreme measures.
Once qualified, it can take anywhere from four to six months to complete the process of bankruptcy.
Filing for Chapter 7 bankruptcy is a big decision, and one that should not be taken lightly. One of the most important steps that Florida residents need to take when filing for bankruptcy is to contact a legal representative that specializes in consumer bankruptcy law. A seasoned attorney can answer questions and help an individual see all aspects of the bankruptcy process.