If you are struggling with overwhelming debt and overdue bills, filing for bankruptcy may be your solution. Filing for Chapter 7 bankruptcy is a powerful debt relief option that has helped thousands recover.
It Provides a Fresh Start
When you file for bankruptcy, your creditors stop their collection efforts immediately. This is a great relief for people with much debt and little income to repay. A bankruptcy filing also stops wage garnishment, repossession and foreclosure proceedings. Missed rent payments and other unpaid bills often trigger these actions. However, it is essential to note that some types of debt are not dischargeable in Chapter 7. These include most past-due child support and tax obligations. Debts related to fraud may not get eliminated by Chapter 7 as well. This is a good reason to undergo credit counseling with a chapter 7 bankruptcy lawyer before filing. After the bankruptcy is filed, your non-exempt unsecured assets will be sold, and the proceeds will be used to pay off your creditors. Generally, these debts are paid in priority order.
It Relieves Stress
Chapter 7 bankruptcy is a powerful tool that can help relieve stress. Filing for bankruptcy immediately stops foreclosures, repossessions, wage garnishments, lawsuits and collection calls, which can negatively impact your day-to-day life. You’ll be able to eliminate most of your dischargeable debt in three to four months. Then, you’ll be free to start rebuilding your finances. A new financial plan can also help to reduce stress. You’ll be able to set a budget, borrow responsibly and be more aware of how you use your money. There are several reasons why people file for bankruptcy. Most often, it results from sleepless nights and overwhelming financial stress.
It Eliminates Legal Liability
Chapter 7 bankruptcy eliminates most unsecured debts, such as credit cards, medical bills, personal loans, and debt from vehicle repossession. It also protects assets exempt from creditors and is a quick process that can be completed in six months. Bankruptcy law is designed to provide a fresh start for people suffering from financial stress. That means taking away a consumer’s property – mainly the home and other items that are considered necessities of modern life – is different from what the law intended to do. A good bankruptcy attorney can help you analyze your assets before filing for Chapter 7. This will ensure that you keep as much of your property as possible. If you lose any property to creditors, it won’t be a major loss and will have a minimal impact on your financial future.
It Protects Your Property
The bankruptcy court appoints a trustee to oversee your case. This person will review your paperwork and answer questions from your creditors. The trustee will also determine if you have any non-exempt property that can be sold to pay off your creditors. The trustee may opt to sell jewelry, cars, or the equity in your home if it’s worth more than what you owe. The most important part of the Chapter 7 process is figuring out which debts are dischargeable and which are not. This is where your lawyer comes in handy. The best way to do this is by first identifying and eliminating the most expensive, non-dischargeable debts. Then, it’s time to take on the less costly and more manageable unsecured debts.
