4 Tips To Help You If You Want To File For Chapter 7 Bankruptcy
Posted on: 28 July 2020
Deciding to use Chapter 7 bankruptcy is not a decision you should rashly make. It is a big decision, and you should evaluate it thoroughly. Once you decide to file, it might help you to research it as much as possible to educate yourself on how it works. As you prepare to file, here are four tips to help you get through your case.
1. Make Sure You Include All Your Debts
The primary benefit of Chapter 7 bankruptcy is the discharge it provides to those who file. The discharge wipes out unsecured debts, leaving you with fewer debts to pay afterward. One essential thing to do when filing is to include every debt you have. Your lawyer will recommend looking at your credit report to ensure that you list each debt. You can also go through your paperwork at home to look for statements that you owe. If you do not include all debts on your filing documents, you cannot receive a discharge on the debts you forget to add to your list.
2. Do What Your Lawyer Tells You
Next, you need a lawyer to handle your case for you. Once you hire one, make sure you do what the lawyer tells you. Your lawyer will give you a list of duties, and you must complete all of them. Failing to do so can jeopardize your case, and you could end up with a dismissed case and no relief.
3. Learn While Taking Your Credit Counseling Courses
During your case, you must take two credit counseling courses. You cannot file for bankruptcy and receive a discharge without completing this step. The best thing you can do while taking the courses is to learn. Learning as much as you can about money management, budgeting, and saving money will help you manage your money differently after filing.
4. Develop a New Lifestyle for Money Management
Finally, it might help you to develop a new mindset about spending while you go through your case. It is also helpful to start living a new lifestyle during your case. By changing the way you think and handle your finances, you can avoid falling into the debt trap in the future.
Using Chapter 7 can drastically change your financial state for the better. If you have questions about how Chapter 7 works, talk to a bankruptcy law firm today to find the answers you need.
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