What most applicants do not know is they also have to take a financial education course before the petition for Chapter 7 bankruptcy can be approved.
Before a person goes forward with filing for bankruptcy, they should always consider all their other options carefully. There are many factors that come into play when bankruptcy is filed, and an attorney should always be contacted before making such a big legal and financial decision.
One of the ways that a person can file for bankruptcy is through Chapter 7. This is actually one of the most common forms of bankruptcy filing in America. In this type of filing, most of a persons unsecured debt will be forgiven and will result in a financial hit to their credit card that will stay with them for the next decade or so. In this form of bankruptcy filing, an individual may be required to hand over their assets such as cars, and valuables.
One of the biggest disadvantages of filing for this form of bankruptcy is that a person will find it hard to apply for loans later on or get a credit card as well. They will also usually not be able to cover loans relating to child support or student loans either through Chapter 7.
To be eligible for a Chapter 7, an assets and expenses assessment will have to be done, and this is called a means test. The means test will factor in a person’s income and expenses and determine whether a person is able to handle their debts on their own or not. A standard process is followed when a person applies for Chapter 7 and the applicant will usually have to wait 4-6 months to get a final answer and the relief they are seeking.
What Should be Done Before Filing for Chapter 7 in Clearwater, Florida
Before a person takes this route, they should first go through credit counseling as well as hire a Chapter 7 attorney as well. By getting professional and legal advice, individuals can make sure they are getting the required advice they need and making sure their best interests are put first.
Applicants will also have to make sure all their paperwork is meticulously carried out and that they even meet the eligibility requirements to begin with. There is also the requirement of determining one’s nonexempt assets such as home equity, vehicles, and property owned including jewelry and other valuables. What most applicants do not know is they also have to take a financial education course before the petition for Chapter 7 bankruptcy can be approved.
Get in touch with a Chapter 7 attorney at the Carol Lawson Law Firm today to learn more about the bankruptcy process.