Sometimes a fresh start is what is needed. For a variety of reasons, the bills have piled up, creditors are calling and the Pennsylvania resident simply cannot figure out how to make ends meet. Rather than struggling under the mound of debt, filing for Chapter 7 bankruptcy may be the solution.
The first step in this process is to gather the required documents. Documents needed include a listing of all creditors. This list should specify the name and address of the creditor, the type of account and the amount owed. Next, the individual will need to provide information regarding his or her income. This should include the total amount of income, its source and its frequency.
Once these items have been compiled, the individual will need create of list of his or her assets, including personal property and real estate holdings. In this case, personal property includes bank accounts as well as possessions. Then, a detailed listing of living expenses will need to be created. This should include rent or mortgage payments, car notes, clothing, food, gas, utilities and all other monthly necessities.
Chapter 7 bankruptcy is advantageous in that it allows the majority of the individual's debt to be discharged. However, as a part of the process, it is possible that some of the assets will be liquidated to help offset some of these debts. This does not mean that the Pennsylvania resident will be left with nothing; many items are exempt from liquidation, and the goal is to give the individual a fresh start rather than be left destitute. Experienced legal counsel can help one review his or her particular situation and determine if Chapter 7 bankruptcy is the appropriate option.
Source: uscourts.gov, "Chapter 7 - Bankruptcy Basics", Accessed on July 5, 2017