Question

each month kody is struggling to make ends meet since maxing out his credit cards to pay for car repairs and medical bills. he is unaware of any way to resolve his financial issues and is considering filing for bankruptcy. which step should kody take before considering filing for chapter 7 bankruptcy? kody should sell all his assets to repay his debts. kody should immediately stop paying all his debts. kody should withdraw his entire retirement savings. kody should seek debt counseling or consolidation.

Explanation:

Filing for bankruptcy is a major step, and before that, seeking debt counseling or consolidation is a recommended first step to explore options for managing debt. Selling all assets (not necessary or advisable), stopping payments (can hurt credit and lead to legal issues), or withdrawing retirement savings (not a good financial move) are not appropriate pre - bankruptcy steps. The option of seeking debt counseling or consolidation is a standard pre - bankruptcy step to try to resolve debt issues.

Answer:

Kody should seek debt counseling or consolidation.