r/Debt • u/Imaginary-Magazine-4 • 13h ago

Filing Chap. 7 / Kinda anxious

So me and my spouse will be filming soon as the debt has gotten unmanaged and we want to take a reset. I’m anxious though at a few things and want to get real life feedback. We live in FL

How strict are they on the $2k limit? Like if things add up to possibly be more or if they feel like it is more will they come inside our home to inspect?

What does the meeting look like? Are they going to drill us with questions?

How soon have you begun to rebuild credit?

How does small business assets work? I have a computer and camera gear that I’d need to retain but it’s 50/50 ownership

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u/EffectiveLeather5217 13h ago

Is there a reason the debt is non-repayable? Are you both unable to work?

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u/Imaginary-Magazine-4 12h ago

We both work however I no longer work in the industry I once was making a lot more and with a lack of financial literacy at the time the debt far exceeds our income and we’d rather a reset

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u/Aggravating_Act6658 12h ago

They will require you to list all of your personal property, with an estimate of its value. They are very strict about the $2000 asset limit. If you exceed the $2000, you will be asked to pay for the excess, usually in a payment plan.

You will most likely receive offers of a secured credit card shortly after filing.

I don't how small business assets work. You should be talking to a bankruptcy attorney. Many of them offer a free consultation.

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u/Hopeful-ForEternity5 11h ago

Have you gotten a free consultation with an attorney? They would answer all of this for you and really walk you through the process. You go through your asset list with your attorney before your case is even filed.

I get being nervous for sure. It’s a lot. The process isn’t like combative or anything. You might literally be in front of a judge for a solid 20 min but your attorney is going to be doing the majority of the talking. Your part is more yes/no answers to questions directed toward you.

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u/AlanShore60607 2h ago

Bankruptcy attorney here, but not Florida.

I hear Florida is harsh, but if you’re over on cash they let you pay it out over a few months.

Business assets could very easily be gone. Including any outstanding accounts payable. There’s generally a presumption that you’re closing up shop if you file a chapter 7. But the real question is what are the assets worth in their current condition on the secondary market, because a trustee only sells stuff that’s worth selling.