Facts to know if you're considering filing Chapter 7 bankruptcy

Life constantly changes. During your own journey, you may have also come to realize that your financial situation perpetually changes as well. The ebb and flow your personal economics, as well as those of your local Mississippi economy and global economic situations, may be stable and fruitful for months or years at a time. However, all of a sudden, they can take a sudden, unexpected hit.  

That said, financial trouble doesn't always occur through sudden, single incidents. Perhaps, your spending has gotten out of hand over time or you have endured several changes of income or repeated medical needs that have been chipping away at your financial stability a little at a time. If you determine that the best way to get back on track is to start with a clean slate, you may want to discuss Chapter 7 bankruptcy with someone well versed in the debt relief process. 

Where to file 

If you plan to file Chapter 7 bankruptcy, you'll need to determine which court has jurisdiction in your particular situation. The answer depends on whether you are filing as an individual or as a business owner. If it's the latter, you will submit your petition in a bankruptcy court where your principle business assets are. If it's the former, you will file in the appropriate court in your permanent residence location. 

Filing requirements 

Like most legal processes, you must satisfy certain filing requirements when petitioning the court for Chapter 7 (or any other form of) bankruptcy. Some of the information you must provide with your application includes documentation of your current income and expenditures, as well as full disclosure of all your assets and liabilities. The court will also want to review your recent tax information. 

Married, filing jointly or separately 

If you're married, you and your spouse must determine whether you wish to file jointly for Chapter 7 bankruptcy or as separate individuals. In either case, both of you must individually satisfy all pre-application requirements necessary, including those mentioned earlier in this post.  

Fees involved in filing for Chapter 7                   

There are various filing fees, administrative fees and surcharges included in filing your petition for Chapter 7 debt relief. You may ask the court to grant you permission to pay such expenses through an installment plan rather than in one lump sum when you file your application with a clerk of the court.  

Weigh your options 

Chapter 7 generally discharges most debts, with a few exceptions. It also typically involves a complete liquidation of all your assets although exemptions do exist that can help you protect your valuable possessions. You will want to discuss all available options with someone experienced in Chapter 7 bankruptcy to help you get your finances back on track in the swiftest, least expensive manner possible. 

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