Filing for Chapter 7 Bankruptcy

by | May 3, 2014 | Lawyers

Many people look at bankruptcy as something to be ashamed of but nothing could be further from the truth. Filing for bankruptcy means that you finally took control over your situation and made a decision that can help you find success in the future. Although a bankruptcy may stay on your credit report for an allotted time, it no longer holds the stigma it once did. Instead, many people find that it is just as easy to get a home or car with a bankruptcy than without one.

Types of Bankruptcy

There are different types of bankruptcy that can be filed in your home state. The most common ones are Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy. If you are considering filing, you will want to meet with a bankruptcy lawyer. They will have a look at your finances and encourage you to make the best decision for you. This may mean that you don’t have to file for bankruptcy after all. Instead, they may recommend that you seek debt counseling with a credit counseling agency. Otherwise you may need to move forward with Chapter 7 bankruptcy as a first step if you don’t qualify to resolve your issues through credit counseling.

Considering Chapter 7 bankruptcy

Chapter 7 bankruptcy is commonly referred to as straight bankruptcy or liquidation bankruptcy. This is the case because this type of bankruptcy allows you to erase the majority of your unsecured debts. The types of debts most commonly erased are credit card debt, bills, and other unsecured debts. However there are certain debts that even a Chapter 7 bankruptcy can not erase. These include student loans, alimony, child support, government debt, and certain liens. If you have doubts about whether or not Chapter 7 bankruptcy can help you eliminate your debt, you will want to consult with an attorney.

How Chapter 7 can help you

Chapter 7 bankruptcy can help you in many different ways. If you have creditors who are constantly harassing you, they will no longer be able to contact you when you file for Chapter 7 bankruptcy. By law the bankruptcy process puts a hold on all collection attempts. In addition if you are at risk of foreclosure, filing for bankruptcy will buy you some time to catch up with your bills. This is one of the advantages to filing for Chapter 7 bankruptcy.



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