Bankruptcy is a solution for those who have heavy debts and can no longer pay their bills.
The process offers relief of your debts through the courts. Contemplating filing for bankruptcy is very stressful. But the relief it can bring from the pressure by creditors can be worthwhile.
When should you file Chapter 7 bankruptcy, and what does it mean?
Unlike Chapter 13, Chapter 7 bankruptcy does not include a debt repayment plan.
It is a liquidation of the creditor’s assets, including possible loss of one’s property, to satisfy debts. It is a drastic move—all options should be considered before filing for Chapter 7.
However, if successful, this can give an individual the “fresh start” they need to gain control of their financial house.
What Is the Chapter 7 Process?
The process takes several months, beginning with a credit counseling session.
If it is determined you are actually able to repay your debts, your case may be converted to a Chapter 13 filing. Once you file, an “automatic stay” immediately stops most creditors from contacting you to obtain what you owe.
Now, the property you own and your debts come under the control of the court.
The court’s bankruptcy trustee will attempt to recover assets to pay your creditors, including the sale of the nonexempt property to help satisfy your debts.
Your car can be repossessed, your house can be sold or put into foreclosure, and valuable personal belongings may be sold. In the end, all your debts are wiped clean.
Life After Bankruptcy
Bankruptcy stays on your credit report for 10 years.
During this time, it will be difficult, though not entirely impossible, to get a traditional mortgage or a credit card with a reasonable interest rate.
However, credit options do exist for those who have recently gone through bankruptcy proceedings.
It’s also important to understand that some debts are not part of the bankruptcy, including child support payments, student loans, and tax debt.
You cannot file again for six years. Chapter 7 should be considered a last resort, dramatic step towards finding relief from debts you are unable to pay.
FL Legal Group attorneys have considerable experience representing individuals in every category of bankruptcy cases, including Chapter 7.
Our goal is to take what is a challenging and emotional time for you and handle the process as smoothly and easily as possible, helping you to retain as much of your property as you are able so that you can continue to live a normal life and get back on your feet.
Click here or call 1-800-984-9951 today for assistance.