3 Steps to Filing for Chapter 7 Bankruptcy
Chapter 7 bankruptcy, or liquidation bankruptcy, is a form of bankruptcy protection that allows a debtor to claim an inability to satisfy his or her debts and to have them discharged. In some cases, some of a debtor’s property or assets may be liquidated to generate funds which are distributed among creditors. A successful Chapter 7 filing allows a debtor to overcome otherwise insurmountable debts, granting them an opportunity to start over again. However, debtors must qualify for this type of bankruptcy.
To discuss your legal options as a debtor who needs a second chance, contact Florida Chapter 7 bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
The following are three steps that will enable you to ensure that you are properly prepared for a Chapter 7 filing, and to help you to ascertain whether you qualify for Chapter 7 or should instead seek another form of debt relief.
Step 1: Collect Financial Data
Before any steps can be taken, a debtor needs to gather together all of their available financial data. This information will be required before a debtor can go forward with any action, as the court will require access to an accurate measure of income, assets, debts, and property values.
Step 2: Go through Credit Counseling
After the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act, debtors must go through credit counseling to find out if they have other options that could improve their financial situation. Although some debtors may benefit from credit counseling, this process often only serves to point out the desperation of a debtor’s circumstances.
Step 3: Check the Means Test
A debtor will not be allowed to file for Chapter 7 bankruptcy unless they pass the means test. The means test compares the state’s average income against the debtor’s, determining whether they should be allowed to file for Chapter 7 protection or not. If the debtor can pass the means test, they will generally be allowed to file.
If you are looking for a way out of your overwhelming debt obligations, you may be a prime candidate for Chapter 7 bankruptcy. To learn more about this form of bankruptcy and how it may be able to help you, contact Florida Chapter 7 bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675.