If you’re feeling overwhelmed by debt, you may be considering bankruptcy as a way to get a fresh start.
Chapter 7 bankruptcy can offer many benefits, including the elimination of most types of debts, protection from creditors, and a chance to rebuild your credit.
In this blog post, we’ll discuss how Chapter 7 bankruptcy works and how it could help you achieve financial security.
Chapter 7 bankruptcy offers individuals an opportunity to take back control of their finances and start over. This type of bankruptcy enables people to clear away most, if not all, of their debts and rebuild a more solid financial future.
Chapter 7 is designed to eliminate unsecured debt such as medical bills, credit card bills, personal loans and possibly some income taxes that are at least three years old.
It does not cover secured debts such as car and home mortgages or student loans, but it can prevent those from being taken from you if your creditors try to repossess them.
Many people who enter into Chapter 7 are looking for a fresh start and the freedom to pursue financial stability without the burden of previous obligations getting in their way.
During and after the bankruptcy proceedings, individuals are allowed to keep certain assets including their homes and vehicles.
This allows those going through this process to still maintain some stability in their lives by keeping assets they rely on daily.
Additionally, assets that may be needed after the bankruptcy process is complete, such as tools needed for work or a vehicle used to make it to job interviews, can enable people to rebuild their finances more easily after they receive their discharge.
Bankruptcy filers can rest assured that most unsecured debts, such as credit card debt and medical bills, will be discharged through the bankruptcy process.
Other debts like payday loans, student loans, and spousal support may need to be addressed differently depending on the specifics of a particular case.
It’s important to understand the details of any bankruptcy filing to know what types of debts are eliminated and which may need additional consideration.
Generally speaking though, most debts will be canceled through a successful bankruptcy filing, providing people with an opportunity to start over financially. Consult with an experienced bankruptcy attorney to understand exactly what can be eliminated.
If you do decide to file bankruptcy, creditors will no longer have the ability to contact you or demand payment from you.
In place of this harassment and relentless attempts at obtaining money from you, debt collectors will be subject to federal regulations that often include mandatory pauses on communication and debt repayment efforts.
Filing for bankruptcy does not provide immediate comfort – it takes a good amount of time and paperwork to complete the process – but it does allow people to manage their finances more effectively and take back control of deeply tense situations.
Completing a financial management course is a great way to take control of your finances and alleviate the burden of debt.
This mandatory course will provide you with the strategies and knowledge necessary to tackle your debt head on and understand how such debts can affect your overall financial situation.
The course will also identify helpful resources that may be useful when facing difficult financial decisions.
Keep in mind that successful completion of this course is a necessary requirement for the discharge of any existing unsecured debts, so it is important that you make every effort to stay engaged and understand the material presented.
Filing for bankruptcy is a major financial decision that should not be made lightly. It can have long lasting implications, so it is important to be aware of all its consequences prior to filing.
It is important to understand that filing for bankruptcy does not exonerate you from all debt. Some debts stay with you regardless of filing for bankruptcy such as student loan debt, unpaid taxes, alimony and child support arrears, and fines or restitution imposed by a court.
These particular debts will not be discharged after the bankruptcy process has been completed.
Additionally, many people will experience a drop in their credit score which could impact your ability to purchase goods or services on credit in the future.
For these reasons it is wise to gain as much knowledge as possible before deciding whether or not to file for bankruptcy.
Chapter 7 bankruptcy can be an excellent option to get the fresh start and financial security you need. Taking time to research the process thoroughly and talking with an experienced bankruptcy lawyer knowledgeable in bankruptcy laws can help ensure you have all the information necessary before beginning the process.
However, it’s important to remember that filing for bankruptcy is a serious decision, and one that should not be taken lightly. Determine if bankruptcy is the right solution for your financial situation and take steps to make sure you understand all of the implications that go along with it.
With thoughtful consideration and the help of a qualified bankruptcy attorney, Chapter 7 bankruptcy could give you the powerful tool and debt relief you need to secure your financial future.
It’s important to hire an experienced bankruptcy attorney as one of the steps to take when you’re facing bankruptcy and you are worried about credit rebuilding after.
This is because there are many different types of bankruptcy. Only an experienced lawyer will know which one would work best for your specific situation.
It might seem like it makes sense to do this yourself. But most people don’t have the time or patience to understand all of the intricate details involved in bankruptcy.
That means they make mistakes by not choosing the right type, or by not filling out paperwork correctly. Both things could lead to delays and ultimately hurt your chances of getting any debt relief at all.
This is not a journey to take lightly, but it is also not one to take alone. If you need to file for bankruptcy, reach out to us today to start your journey with us.
If you want to learn more about the options you have and the steps to take, call us for a free consultation.
Parker and DuFresne