Understanding Chapter 7 Bankruptcy: When and How to Begin the Process

If you’re an individual or business in Polk County, Florida, struggling with overwhelming debt, bankruptcy might seem like a daunting word. However, filing for Chapter 7 bankruptcy can be the fresh start you need. At McMann, P.A., we’re here to help you understand the process and guide you through every step.

When Should You Consider Chapter 7 Bankruptcy?

For Individuals: If you’re facing situations such as:

• Persistent financial hardship despite cutting expenses and increasing income.

• Unmanageable credit card debt with no foreseeable way to pay it down.

• Constant creditor harassment or threats of wage garnishment.

• Falling behind on rent, mortgage payments, or utilities with no way to catch up.

  
  

For Businesses: Chapter 7 can be an effective option if:

• The business is insolvent, meaning its debts far outweigh its assets.

• The business is unable to meet payroll or other key obligations.

• You’ve decided to close the business and need a clean slate to avoid personal liability for business debts.

What Do You Need to File a Chapter 7 Bankruptcy?

Whether you’re an individual or a business, your bankruptcy attorney will need a clear picture of your financial situation. Gathering accurate documentation is essential to a smooth and successful filing process.

Key Documents for Individuals:

1. Bank Account Statements: Provide the last 6–12 months of checking and savings account statements.

2. Pay Stubs or Income Records: At least the last 6 months of income documentation, including pay stubs, benefits, or other sources of income.

3. Tax Returns: At least the last two years of federal and state tax returns.

4. Debt Documentation:

   • Credit card statements.

   • Medical bills.

   • Collection notices.

   • Any other debts, including personal loans or payday loans.

5. Asset Information:

   • Titles for vehicles, deeds for real estate, or other documentation for significant assets.

   • Recent appraisal reports for property.

Key Documents for Businesses:

1. Bank Statements: Provide the last 12 months of all business account statements.

2. Profit and Loss Statements: Summaries of the business’s financial performance over the past year or more.

3. Tax Returns: The last two to three years of business tax returns.

4. Debt Records:

   • Business credit card statements.

   • Loan agreements or financing documents.

   • Vendor invoices or other unpaid obligations.

5. Asset Records:

   • Inventory lists.

   • Equipment ownership or lease documents.

   • Real estate deeds or lease agreements.

How McMann, P.A., Can Help

Filing for Chapter 7 bankruptcy involves many moving parts, but you don’t have to face it alone.

At McMann, P.A., we’ll:

• Review your financial situation to determine whether Chapter 7 is the right choice.

• Help you compile the necessary documentation.

• Guide you through each step of the filing process, from submitting your petition to handling creditor communications.

Start the Conversation Today

Facing financial hardship is never easy, but taking proactive steps can lead to a brighter financial future. If you’re considering Chapter 7 bankruptcy as an individual or business owner in Polk County, contact McMann, P.A., today.

We’re here to provide clarity, compassion, and expert guidance. Let’s take the first step together. Call us or schedule a consultation online to get started.

 Mark D. McMann

McMann, P.A.

1700 South Florida Ave.

Lakeland, Florida 33803

863-393-9010

 www.mcmannpa.com