Going through bankruptcy is one of the most mentally and emotionally trying events a person may ever experience. For many in Orlando, Florida, the process of completing bankruptcy is nearly as stressful as the overwhelming debt that caused the need to seek relief.
A chapter 7 bankruptcy involves liquidating some of your assets to repay loans, credit card debt and other financial obligations. It is the most common form of bankruptcy for those mired in overwhelming debt.
What should you do before filing?
We believe you can reduce the stress of chapter 7 bankruptcy by taking a measured approach filled with careful consideration. Instead of rushing in, take some time to reflect on your situation to ensure you make the best choices. Taking the steps outlined below can help.
Weigh the pros and cons of chapter 7. Examples of its advantages include keeping some of your assets and immediately ending creditor harassment. Disadvantages include losing some of your property and giving up your credit cards.
Find out if you qualify. You may have to take a test (called the means test) to see if your income qualifies you for a chapter 7 bankruptcy. If you appear to earn too much for this type of bankruptcy, you may still be eligible if you do not have enough money to address your debts.
Do not go through it alone. In nearly all cases, counsel from someone who understands the state bankruptcy laws can make a difference in how your bankruptcy proceeds. Such counsel can also help you avoid making any mistakes that could delay your bankruptcy or disqualify you from filing.
You can find much more about consumer or personal bankruptcy by continuing to review our website and blog.