If you're interested in learning more about Chapter 7 bankruptcy, it never hurts to compile information to help you make an informed and confident decision.
If you decide to proceed, there are several steps you can take to prepare for the process:
- Understand the pros and cons: Before filing, make sure you understand both the pros and cons of Chapter 7 bankruptcy. While the benefits far outweigh the potential drawbacks, you want to be familiar with everything you will face.
- Assess your finances: This includes making a checklist of both your assets and debts. The bankruptcy court will require this information, so you might as well get it together as far in advance as possible. Don't attempt to hide anything from the court, as doing so could result in dismissal of your case without discharging your debts.
- Attend credit counseling: It may not be something you want to do, but it's a requirement of filing for Chapter 7 bankruptcy. You must attend counseling with an approved agency within 180 days of filing. This will help you decide if Chapter 7 bankruptcy is the right choice. It will also provide you with guidance to help prevent the same financial mistakes in the future.
As you prepare for Chapter 7 bankruptcy, you may have questions and concerns. Answer and address all of these before making a final decision.
With everything in order, you can confidently move into the Chapter 7 bankruptcy process. If everything goes as planned, your case will be closed within four to six months and you'll have the fresh start you've been dreaming of.