Filing for Chapter 7 bankruptcy may feel like a pinnacle event in your life that fills you with a variety of emotions, like fear, anxiousness, and hope. Before you move forward with the official filing process, there are a few things you need to think about:
- You can keep some of your assets. Just because you file Chapter 7 bankruptcy doesn’t mean you will immediately lose everything. In most cases, you can hold onto personal property that is considered exempt, like electronics, household furnishings, and clothing.
- You must qualify for Chapter 7 bankruptcy. You must show to the bankruptcy court that you are unable to repay your debts to your creditors, either through your income or a combination of your income and expenses. However, since many people use bankruptcy as a final resort, filers usually do not have a problem qualifying for this form of consumer bankruptcy.
- When you file bankruptcy, the action goes on your credit report. When you file for bankruptcy, this financial action will remain on your credit report for about 10 years. However, the older your bankruptcy is, the less likely it is that it will scare away lenders when you apply for financing.
It pays to get advice. Filing bankruptcy is a big financial decision. Before you move forward with filing, turn to our law firm for legal advice. We can help you determine if bankruptcy is the best option for your situation and if it is, guide you through the rest of this legal process.