Chapter 7 Bankruptcy is one way to gain control over your finances and start over with a clean slate. As helpful as this law is, it isn’t for everyone. A Chapter 7 Bankruptcy Evaluation can help you decide if using the federal bankruptcy laws is a good choice for your life and financial situation.
Prior to your evaluation, your lawyer may ask you to gather all of your financial documents. Be sure to include bank statement, your mortgage and car loan documents, credit card statements and medical bills. Some debts cannot be discharged in bankruptcy court. If the majority of your debt is child support, student loans or your home mortgage, your attorney may help you find other ways to reduce your debt than through bankruptcy. However, if your debts include mostly credit cards and unsecured loans, you may be a good candidate for Chapter 7 bankruptcy protection. In order to get a clear picture of your financial situation and determine if you qualify under the Chapter 7 bankruptcy code, your lawyer will also need to know about your assets.
You will need to tell your lawyer about all of the assets that you own in your name. Real estate, investment accounts, retirement savings plans and bank accounts all have to be accounted for when you file for bankruptcy. However, you may not have to liquidate all of your assets to pay your outstanding debts. Some assets, such as retirement accounts and pension payments are exempt. A Chapter 7 Bankruptcy Evaluation can help you and your lawyer determine if you qualify based on the value of your nonexempt assets.
You may be able to keep your home and your automobile after you file for Chapter 7 bankruptcy protection if you meet certain qualifications. Your payments must be current with your lender when you file and they must remain current until the bankruptcy is discharged to avoid foreclosure on your property or repossession of your vehicle. The attorneys at Rapa Law Office PC can explain the steps you would need to take if you decide to keep your house and car. If you don’t qualify for Chapter 7 bankruptcy protection, you may be able to restructure your debts with Chapter 13 bankruptcy.