Is a Chapter 7 Bankruptcy is Right for You
If you are contemplating bankruptcy, you are most likely in financial straits and seeking a break from harassing phone calls from creditors or a way to find relief from the heavy burden of debt. Did you know that there are two types of bankruptcy that you might qualify for? If you are seeking a new beginning, then Chapter 7 bankruptcy would be the likely solution.
Chapter 7 is probably the most common form of bankruptcy, especially for individuals. This version of bankruptcy involves selling all the property or assets so that the proceeds can go to pay off creditors. If you go this Chapter 7 route, you likely have nothing left to lose, thus giving you a new start. Plus, most of the debts would be released within a few months, once a petition for bankruptcy was filed. The catch however is that the Chapter 7 bankruptcy would stay on your credit history for years. This can hinder future applications for credit, a home mortgage or car loan.
Chapter 7 bankruptcy is not the best option for everyone. In some cases, all assets are lost and you would have to literally start over. However, there are some instances where you could still keep your vehicle or home. Part of this Chapter 7 agreement would involve you signing something called a reaffirmation agreement with the bank holding your home or vehicle loan, where you commit to continuing to pay for these assets.
Discharging debt under Chapter 7 bankruptcy can be complicated. There are a number of debts which are categorized and could be released through the bankruptcy law. Many times, it takes retaining a bankruptcy attorney to wade through the legalese for you and explain the laws in a way you can understand so you know your options.
Another reason you should retain a bankruptcy attorney is so that you can determine what your choices are for getting out from under your financial burdens. Not everyone is a good candidate for Chapter 7 bankruptcy. And if you are a candidate, do you know what the steps are to filing for bankruptcy? Attorneys know all the procedures of petitioning the courts as well as the laws in dealing with a Chapter 7 filing.
So when you are at the end of your financial rope in dealing with creditor calls and worried about what the future holds, contact a bankruptcy lawyer. They can work with you in determining the best course of action for your situation, whether it is Chapter 7 or other alternatives.