When debts start piling up, the future can seem bleak, especially amid the rising cost of living in Florida. You can file for chapter 7 bankruptcy if you need relief from an overwhelming mountain of payments and non-stop collection from creditors.
Even if you seek debt relief, a court could potentially deny a discharge of your debts. Therefore, it is crucial to ensure you collect the necessary documents regarding your financial situation if you want your debts discharged.
Get your paperwork ready
If you plan on filing for chapter 7 bankruptcy, you must disclose a detailed list depicting your financial standing. This covers:
- Your total income and its source
- Accounting of your living expenses
- All of your properties
Furthermore, you will also have to submit a list of all debts and the creditors you owe.
It is best to be clear and forthcoming about all of your assets and debts when filing for chapter 7 bankruptcy. Inaccuracies and missing financial information could result in a court denying your case.
Documentation also proves you are eligible to file
A key requirement for chapter 7 eligibility is passing the income test or the “means test.” You must show that your annual income is less than the state median depending on the number of individuals in your household.
You will have to submit statements detailing your current monthly income and a complete calculation of all your assets, debts and expenses to prove eligibility to file for bankruptcy.
Therefore, if you want a court to discharge your debts under chapter 7 bankruptcy, one of the first steps to take is to prepare and organize all the necessary documents pertaining to your financial standing and ensure that these are complete and correct.
