A Chapter 7 bankruptcy isn’t throwing in the towel and giving up on the debts that you owe. Instead, this is a time when you are acknowledging that you are in over your head. The bankruptcy lets your creditors know that you can’t make the payments and takes the false sense of hope away and presents them with a factual situation.
When you decide to file for bankruptcy, you will have to make sure that you are thinking about your overall financial situation. A Chapter 7 bankruptcy means that you will have to part with many assets. Make sure that you are considering this as part of the process to decide if it is right for you.
A Chapter 7 bankruptcy is also known as a liquidation bankruptcy because the available and nonexempt assets that you own are liquidated and the proceeds are used to pay your creditors. Once this is done, the creditors won’t receive more money. Instead, those debts are discharged.
We want you to realize that this isn’t an easy process. You do have some responsibilities that you will have to meet for this type of filing. You need to undergo credit counseling before you file and will need to go through an education process afterward. Certificates of completion are required for your case to move forward.
We know that this is a big step for you. Thinking about your goals and financial future can help you to decide if this is right option for you. We can help you move your case forward when you are ready to file.
