If you're inching closer and closer to filing for Chapter 7 bankruptcy, it's imperative to understand what you're getting into. The way you prepare for this process will help you make the right decisions at the right time.
Once you have weighed your options, here are some simple steps to help you prepare:
- Make a list of the pros and cons. You need to understand both the good and bad, as this is the only way to make a confident final decision.
- Learn more about Chapter 7 bankruptcy alternatives. Bankruptcy may be the best answer, but don't decide on this until you consider alternatives such as debt consolidation.
- Determine your eligibility. Just because you want to file for Chapter 7 bankruptcy doesn't mean you're able to do so. If you don't qualify for Chapter 7, you can learn more about Chapter 13.
- Attend credit counseling. You're required to attend credit counseling within 180 days of filing for Chapter 7 bankruptcy.
- Gather all the necessary documentation. Any information you have regarding your debt, income and property will come in handy. Even if you don't think you'll need something, it's best to collect it upfront.
By taking these simple steps, you're able to better prepare for Chapter 7 bankruptcy and the consequences doing so will bring to your life.
If you decide to move forward, make sure you're clear on what's expected of you and what will happen in the days, weeks and months to come.
When you understand the process and your legal rights, you're less likely to run into a surprise that throws you for a curve.