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3 Ways To Ensure A Successful Chapter 7 Bankruptcy Proceeding

by Jamie Nichols

Finding out that your employer is cutting your job can be a devastating blow, especially if you have worked for the company for years. You go from having everything in order to struggling to pay your bills in no time. Before you know it, you have fallen behind and there is no way to catch up. If you are thinking about filing for Chapter 7 bankruptcy, there are a few things you want to make sure you do so as not to jeopardize your case.

Make sure you list all of your creditors.

When filling out the bankruptcy paperwork, you want to make sure that all of your creditors are included in your petition. By omitting a creditor from your case, you are essentially making yourself still liable for that debt. The bankruptcy court isn't going to discharge a debt they didn't know about. If you try to add creditors into the case after the original paperwork is filed, it will cost you a pretty penny to do so. Every area is different, but it could be anywhere from $40 per creditor on up. If you forget 10 creditors, that's $400 out of your pocket. Who wants to throw that kind of money away?

Don't reaffirm debt that you cannot afford.

Some people end up reaffirming debt that they cannot afford to pay in the first place. For example, do you really need to keep a car that is costing you $700 per month just for the payment? You might be better off letting the car go and getting yourself something cheaper that isn't going to strain your budget so much. Any debt that is unreasonable should go. Otherwise, you are going to put yourself in a situation where you won't be able to recover financially.

Don't wait too long to file.

While no one wants to rush into an unpleasant situation, you are only make it worse for yourself by waiting to file for bankruptcy. The longer you wait, the higher chance there is of creditors garnishing your wages, levying your bank accounts, repossessing your vehicle and foreclosing on your home. Prevent these unpleasant events from happening by getting your case filed right away.

By the time your bankruptcy proceeding is over, you will have a fresh start free from debt. Make sure you act responsibly to prevent getting back into a bad situation later on down the line. If you have questions, talk to an attorney like John G Rhyne Attorney At Law.