Are you overwhelmed with debts and have no clue how to get out of this mess? One option you can turn to is bankruptcy. Chapter 7 bankruptcy provides a substantial amount of relief to many people who are in this position. If you choose this option, you will have to follow the rules dictated by law. Here are four of the things you must do if you decide to file for Chapter 7.
Reveal Every Asset You Have
First, your lawyer will ask you to list every asset you own, including assets that are not in your possession. When listing your assets, you must not skip any. You cannot try to hide assets or act like you no longer own them. You also cannot quickly sell them or sign their titles to a relative or friend. There is a risk you take with losing assets if you file for Chapter 7. The court might ask you for some of the things you own. If this happens, you must hand them over to the court.
Show All Your Income and Money Collected for a Period
Two, you must show all your income for a specific timeframe. The court usually requires viewing a person's income for the previous six months, including all the money you collected during this time. If you received child support payments, you must include these as income. If someone left you an inheritance, you must include the money you received. You must add all the money you earned or received in the past six months.
Find Every Debt You Have
The next thing you must do when using Chapter 7 is to list every debt you have. It might be challenging to find out every debt you have, but it is vital to list all of them. If you fail to list any debts, the court cannot include those in the discharge.
Get Rid of Your Credit Cards
Finally, the court will issue an order that closes all your credit card accounts, including those with a balance of zero. You can't keep any credit cards if you file for Chapter 7. You can apply for new credit cards after your case, but you will lose all your current accounts.
These four things are essential when filing a Chapter 7 case. If you are interested in filing or have questions about your case, talk to a bankruptcy lawyer in your area.Share