If there comes a time when you want to file for Chapter 7 bankruptcy, you must first do a few things.
Above all else, make sure this is the best financial decision for you at the present time. Along with this, take the time to learn more about the process, the finer details and whether or not you are in position to take advantage.
Not everyone is eligible to file for Chapter 7 bankruptcy. If you find yourself in this position, you'll need to turn your attention to Chapter 13 bankruptcy.
Here are some of the reasons why a debtor may not be eligible:
-- Your income is too high.
-- You are able to repay some or all of your debt.
-- You have debt that was previously discharged in bankruptcy.
-- A bankruptcy case was dismissed by the court within the past 180 days.
-- You did not meet the credit counseling requirement set forth by the court.
-- It is believed that you are using Chapter 7 bankruptcy as a means of defrauding creditors.
These are just a few of the reasons why you may not be eligible to file for Chapter 7 bankruptcy.
Your job is to determine if you can move forward with this process. If you can, turn your attention to the process itself and what is required of you.
With the help of a legal professional and a clear idea of what you want to accomplish, you may find yourself using Chapter 7 bankruptcy to escape debt and improve your financial situation.
Source: FindLaw, "Filing for Chapter 7," accessed Feb. 14, 2017