2 Facts That You Should Know Before Seeking a Chapter 7 Bankruptcy

If you are at an impasse with your finances and nothing seems to make things better, it’s time to consider the idea of filing a personal bankruptcy. Depending on the specifics of your situation, seeking bankruptcy could be the answer. As you consult with your bankruptcy attorney St. Petersburg FL, there are quite a few things you will learn.

Here are two examples:

Not All Debts Can Be Discharged In a Chapter 7 Bankruptcy

Current bankruptcy laws do not allow certain types of debt to be discharged in a Chapter 7 action. In some cases, there may be a very narrow set of circumstances that would allow you to file anyway, but few people can meet those exemptions. If your bankruptcy attorney St. Petersburg FL notes that some of your debt falls into this category and you do not qualify for any type of exemption, your legal counsel may recommend seeking a Chapter 13 bankruptcy instead.

You May Have To Surrender Some Assets to The Court

Some people think that a Chapter 7 bankruptcy simply discharges the debts and people get to keep all of their assets, but that’s not necessarily the case.

If you have assets that the court considers non-exempt, they must be handed over to the trustee. Those assets will be sold and the proceeds used to partially satisfy your debts. Once that’s done, the remainder of the debts can be discharged. Your bankruptcy attorney St. Petersburg FL will help you understand the difference between exempt and non-exempt assets.

While bankruptcy is something most people would prefer to avoid, there are times when it can be the only real option. Talk with your attorney and find out if a Chapter 7 is possible in your case. If so, authorize the attorney to file the petition on your behalf, make sure you comply with all the court’s requirements, and rest assured that your legal counsel will be with you every step of the way.

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