Florida Bankruptcy Services - Chapter 7 Bankruptcy Petition Preparation
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Should I File Chapter 7 Bankruptcy?
Should I file chapter 7 bankruptcy?
Only you can make this decision - not us or anyone else.
Here are some typical questions & answers people ask when
considering filing chapter 7 bankruptcy.
Is this happening to you?
You're afraid to answer the telephone.
You and your spouse argue over debts.
You are facing foreclosure or being sued.
You are using credit cards to purchase necessities such as food.
You are transferring balances from one credit card to another.
You are only paying the minimum monthly payments on credit cards.
You have unsecured debt that cannot be paid off within 5 years.
You have a lot of debt, unemployed, do not own a home, and have no secured
debt or are willing to surrender your secured debt such as a financed vehicle.
Who knows I filed bankruptcy?
The only people that know you filed bankruptcy are your creditors, the court,
and the IRS. Your employer is NOT notified unless your employer is a
creditor, which is usually not the case.
Should I consolidate my debt by refinancing my home?
Only you can make this decision but ask yourself why would you want to
jeopardize your home for the sake of repaying a debt. If your debt
can be paid off within 5 years, see if you can work out payment
arrangements with the creditor. If you can, then maybe filing bankruptcy
is a good option but again only you can make this decision.
Can I surrender my vehicle?
It's your vehicle and only you can make the decision of whether you
want to keep it or not. If you cannot afford your car payments (including
gas, insurance, maintenance) or you owe substantially more than what a vehicle is worth, then
you might want to consider ridding yourself of an unwanted/unaffordable
vehicle.
Can I (should I) surrender my leased vehicle?
It's your leased vehicle and only you can make this decision.
But it makes no sense to lease property because at the end of the lease all you end
up with is a useless stack of receipts and usually a large debt for extra charges that
are almost always added to every lease.
I can't afford my home - can I surrender it?
It's your house. Only you can make this decision & do not do
so in haste because it is probably your biggest asset. Contact
your lender or an attorney because they may be able to find a way to
save your home.
Will bankruptcy stop creditor harassment?
Yes, but you can stop the harassment long before you make the
decision to file bankruptcy. It's easy! All you need do is
send a letter to the creditor/collection agency via certified mail,
return receipt. Date the letter, tell them not to contact you, and
don't forget to sign it.
Does my spouse have to file jointly with me?
This is something you will have to decide. Some factors you
may consider are: the
amount of debt you owe, are they joint accounts, is there anyway the
debts can be repaid (ie. tax refund or inheritance), etc. If you have joint accounts
and your spouse elects not to file, he/she may be
responsible for paying the joint debts if they are a joint account holder, thus defeating the purpose of filing
bankruptcy but only the court can make this determination.
Reference Materials
Frequently Asked Questions
Chapter 7 Bankruptcy
Got my Discharge of Debt
Copyright 2008 Florida Bankruptcy Services