It’s no secret that thousands of families across the United States are struggling financially these days. Jobs are being lost, and the bills don’t stop coming. It may feel like there is no way out. However, many Florida residents have the option of filing for Chapter 7 bankruptcy. Here are some basic steps to take before filing.
Known as a liquidation, Chapter 7 bankruptcy can eliminate certain types of debt, such as credit cards and personal loans. Before a person files for Chapter 7 bankruptcy, he or she must first determine eligibility. Most people have to qualify by taking and passing the means test. An individual may be eligible if average gross income during the six months prior to filing is greater than the average income for a family of the same size in his or her state. If not, the individual may be required to subtract allowed expenses from income to determine eligibility.
Also, before filing for Chapter 7 bankruptcy, it is necessary to analyze and examine the types of debt the individual has. Some types of debt, like tax debt, child support and some student loan balances are not dischargeable with a Chapter 7 bankruptcy. When filing, there will be several forms to fill out which will tell the courts about property, income and expenses.
The process for filing for Chapter 7 bankruptcy can get complicated and is often confusing. Any Florida resident who wants to know more about this process should consider discussions with a seasoned and knowledgeable attorney. An experienced bankruptcy law attorney can answer questions and guide individuals through this challenging process.