Bankruptcy provides the opportunity to settle debts. The process requires either a repayment plan that lasts up to five years or liquidation of assets. For consumers to qualify for a repayment plan through chapter 13, they must meet income requirements. If someone doesn’t qualify, Chapter 7 is their option. Chapter 7 bankruptcy in Tampa can provide debt settlement opportunities for consumers.
A Review of the Consumer’s Assets
The court reviews the consumer’s assets to determine if they would generate enough money to pay off debts. The court reviews the procedures required for selling the assets and determines if it is feasible according to bankruptcy guidelines.
Credit Counseling Programs
Before the consumer can start their bankruptcy claim, they must attend a state-approved credit counseling program. The program shows them how to manage their finances better and avoid overwhelming debt in the future. They also learn how to pay off debts quickly without incurring late charges and negative listings on their credit report. The strategies are presented to help the consumer rebuild their credit after they file for bankruptcy.
Starting the Liquidation Process
The liquidation process starts with the sale of all assets. Assets are sold through a real estate transaction, auction, or quick sale. The trustee assigned to the claim collects all proceeds after each sale. The funds are distributed to all creditors to pay off the debt.
What Can the Consumer Expect
Filing for bankruptcy means temporary giving control of your finances to the court. Bankruptcy can remain on a credit report for up to ten years, which might present difficulties in the future. However, the temporary issues you’ll face with bankruptcy are better than a lifetime of financial misery.
Consumers who want to start a claim for chapter 7 bankruptcy in Tampa can visit our website at https://www.attorneyfortampabay.com/ for more details now.