CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Is Filing for Chapter 7 Bankruptcy a Bad Idea?

Filing For Chapter 7 Bankruptcy Tampa, St Petersburg, And Pasco Florida.If 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.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can Leading a Frugal Lifestyle Prevent a Second Bankruptcy?

Changing your approach to spending is a necessity after bankruptcy. You’ll turn over some control of your finances to the...
Read More

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

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

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

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

Map And Directions

St. Petersburg 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

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions