You hope there never comes a day when you have to prepare for a Chapter 7 bankruptcy filing, but there’s no way of knowing what the future holds. If you do find yourself in this position, there are a variety of questions you must answer. Doing so will help you better understand your current situation, the future and the changes you can make for the better.
These five questions are a good place to start:
- Have you considered all options outside of Chapter 7 bankruptcy, such as debt consolidation?
- Are you familiar with the benefits of Chapter 7 bankruptcy, such as a fresh start and the ability to discharge some or all of your debts?
- Have you compared the pros and cons of Chapter 7 bankruptcy against Chapter 13 bankruptcy?
- Are you familiar with the impact that a Chapter 7 bankruptcy filing will have on your future, such as remaining on your credit report for 10 years?
- Do you understand Chapter 7 bankruptcy exemptions, how they work and if any of your assets are at risk?
Once you answer these questions, many others will move to the forefront. You should then address them, as you inch toward making a final decision.
Filing for Chapter 7 bankruptcy is a big decision, but don’t let that stop you from proceeding should you consider it the best way to get your finances back on track. The process isn’t nearly as scary as most people think. In the end, the only thing that matters is that you make the right decision for your situation. Doing so will put your mind at ease, all while allowing you to improve your circumstances.
If you’ve been agonizing over your finances but worry about what will happen during a bankruptcy, an experienced advocate can answer all your questions.