CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Is Filing for Chapter 7 Bankruptcy a Bad Idea?

Filing for BankruptcyIf you’ve been dealing with financial challenges for an extended period of time, chances are you’ve considered bankruptcy.

Most people who have fallen behind on their debts to the point they are receiving phone daily phone calls from creditors have at least wondered if bankruptcy could improve their situation.

And most people find, with just a bit of research, there are plenty of resources available that explain the bankruptcy process and tell them how helpful it can be.

After all, what could be better than having debts you can’t afford to pay discharged so you’re no longer responsible for paying them? Chapter 7 bankruptcy can essentially make your debt “disappear” and allow you to get a new financial start.

But is it really the best option for you? Are there certain circumstances in which filing for Chapter 7 would be a bad idea and you’d be better off taking another course of action?

Before committing to Chapter 7 bankruptcy, there are a few questions to ask to help you determine if filing could be a mistake.

Will Chapter 7 Discharge All of My Debts?

Chapter 7 can help you wipe out a number of your unsecured debts, but there are some types of debt Chapter 7 won’t discharge. For instance, if you’ve fallen behind on child support Chapter 7 won’t eliminate that debt. The same is true for some types of tax debts and student loan debts.

The best thing you can do before filing is to review your debts with a bankruptcy professional and determine which will be eliminated. In some cases, even if Chapter 7 doesn’t take care of all of your debts, it will free up money to put toward non-dischargeable debts.

The important thing is that you understand where you’ll be post-bankruptcy before moving ahead with filing.

To learn more about dischargeable and non-dischargeable debts, check out this information.

Am I Worried about My Credit?

In most cases, by the time you consider bankruptcy, your credit will be in pretty bad shape. However, this isn’t the case for everyone.

If you’re struggling with a debt you can’t afford but your credit hasn’t suffered too much, bankruptcy probably isn’t your best option. Filing will impact your credit score significantly, so unless your score has already been dinged from late payments and other problems, you might have better options than bankruptcy.

Do I Want to Protect Any Property I Own?

Most people who have significant assets choose to file for Chapter 13 bankruptcy instead of Chapter 7. Some property can be exempted in Chapter 7, but the limits are stricter.

Before filing for Chapter 7, consider what, if any assets you’ll want to protect and make sure doing so is an option. The last thing you want is to move forward with filing only to realize you’ll lose property that’s important to you.

It’s also important to work with an experienced bankruptcy professional to ensure any property you want protected is exempted in the proper way. Filing for bankruptcy on your own to save attorney fees can cost you a great deal in the long run if you end up losing assets unexpectedly.

Is This as Bad as It Gets Financially?

If there’s any chance your financial situation could worsen in the future, Chapter 7 likely isn’t your best option – yet.

Those facing significant medical debts and dealing with ongoing health issues, or those who know the loss of a job is imminent often find themselves in this situation. Your best bet is to postpone filing for bankruptcy until your situation is just about as bad as it will get. Your other option is to file for Chapter 13 and eventually have it converted to Chapter 7 if and when you are no longer able to afford to make your payments.

To learn more about Chapter 7 bankruptcy or for help determining if filing would be good or bad for you, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Tampa Bankruptcy Law Blog

Managing Credit Card Debt: What Can Help You Get Things under Control

Managing Credit Card Debt: What Can Help You Get Things under Control

If you feel as if you are drowning in credit card debt and you aren’t sure where to find relief,...
Read More

My College Closed: Do I Need to Repay My Student Loans?

Though it might not happen to the world’s most famous universities, there are some colleges that go out of business....
Read More
Bankruptcy Overwhelm: Why Organizing Your Paperwork is So Important

Bankruptcy Overwhelm: Why Organizing Your Paperwork is So Important

Paperwork and Filing for Bankruptcy in Florida Filing for bankruptcy sounds simple enough, but it’s actually a complicated legal proceeding...
Read More
Bankruptcy Filers are at Risk for Scams: What You Can Do to Protect Yourself Post-Filing

Bankruptcy Filers are at Risk for Scams: What You Can Do to Protect Yourself Post-Filing

It’s a sad fact that no matter who you are or what your struggles in life include, there are people...
Read More
Five Tips to Help You with Bankruptcy Credit Counseling

Five Tips to Help You with Bankruptcy Credit Counseling

Bankruptcy Post Filing Education and Counseling Requirements If you’ve begun the bankruptcy process you already know about the education requirements....
Read More
Is a Business Loan Possible If I File for Bankruptcy?

Is a Business Loan Possible If I File for Bankruptcy?

Filing for Bankruptcy Filing for bankruptcy might make it seem as if your world has stopped, but the truth is...
Read More
What Should I Do to Prepare for My 341 Meeting of Creditors?

What Should I Do to Prepare for My 341 Meeting of Creditors?

The 341 Meeting of Creditors can be one of the most intimidating aspects of filing for bankruptcy but it doesn’t...
Read More
What Happens If I Die Mid-Bankruptcy?

What Happens If I Die Mid-Bankruptcy?

Life is unpredictable and so is death. Very few people are able to predict when they will die and in...
Read More
What Do I Need to Know about Property Seizure?

What Do I Need to Know about Property Seizure?

One of the scariest things that can happen when you’re dealing with out-of-control debt is property seizure. Creditors might legally...
Read More
I’m Self Employed – Can I File for Bankruptcy?

I’m Self Employed – Can I File for Bankruptcy?

When it comes to being self-employed, sometimes it seems the odds are stacked against you. Taxes, insurance, other expenses… the...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online     Bankruptcy Courses    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
Maps & Directions


Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.