Many people who decide to file for bankruptcy feel that they are stepping into the unknown. They may feel that bankruptcy was their last possible option to get them out of debt.
While bankruptcy can be viewed as a last resort, it can have a positive outcome. Filing for bankruptcy can make it possible for you to gain a fresh start from your debts and move forward positively. The following are some key things to expect if you are filing for Chapter 7 bankruptcy.
You will need to pass a means test
Only those with a relatively low income are eligible to file for Chapter 7 bankruptcy. To file, you will need to pass a means test and show that you cannot realistically use your income to repay your debts.
You will need to liquidate a significant amount of your assets
Chapter 7 bankruptcy is largely concerned with liquidating assets to pay off debts. Therefore, you should be prepared to give up possessions such as your home or potentially your car.
You will likely benefit from a debt discharge
Most Chapter 7 bankruptcy filers benefit from a debt discharge upon the completion of the bankruptcy. This means that if your assets were not sufficient to pay off the entirety of your debts, the remaining debt will be written off, and you will be able to gain a fresh financial start.
Chapter 7 bankruptcy is a popular choice because it can be completed in a matter of months. If you want to address your debts and look forward to a positive future, you should consider taking action.
