Sometimes, no matter how hard you try to get your finances on track, there is always something that comes up and prevents it from happening. If you find that you are drowning in debts that are hard to pay off, you might want to consider filing for Chapter 7 bankruptcy. In this article, find out what you need to know about Chapter 7 bankruptcy and how you should go about the filing process.
What Should Someone in Debt Know About Chapter 7 Bankruptcy?
The first thing you should understand about filing for Chapter 7 bankruptcy is that it will have an effect on your credit. You can expect bankruptcy to remain on your credit report for at least 10 years after you file. The worst thing about having a credit report with bankruptcy on it is that you may not be able to get financed for a home if you decide to get one.
Although having filing for bankruptcy can affect your credit, you will actually find that it is a great way to get rid of your debt for good. Chapter 7 bankruptcy will allow you to be forgiven for the majority of your debts, if not all of them. Once you have filed, creditors will no longer have the right to pressure you for payments or threaten you with lawsuits. You will also enjoy the perk of not having to deal with debt collectors calling your home all of the time.
How Should Chapter 7 Bankruptcy Be Filed?
You may want to hire a lawyer to help you with the filing process for Chapter 7 bankruptcy, as it will have to be approved by the court. A lawyer will help you by calculating what you owe to creditors compared to the amount of income you are bringing in.
The lawyer will then take your case before a bankruptcy judge for approval. If you are approved for bankruptcy, a trustee will be appointed by the court to settle your debts with creditors. In some cases, the trustee will sell some of your assets to satisfy creditors. However, a lawyer can help you avoid having to sell your assets.
Get rid of your stress from having too many debts to handle. You can file for Chapter 7 bankruptcy and start over with how you handle your finances. Don't forget to hire lawyers like Morrison & Murff to help you file with enough evidence to get approved by a bankruptcy judge!
Share27 March 2015
Filing for bankruptcy has a tendency to make people feel ashamed and stressed out, and can turn into a big source of depression if not handled properly. As a counselor for couples and families, I have worked with various families throughout the years who have had to go through bankruptcy. And during this time, I have seen firsthand how, with the right mindset, going through bankruptcy can make people stronger in their financial lives and careers. I started this blog to provide information about the right things to do and the things that should be avoided while going through bankruptcy to minimize stress and maximize potential once the process is over. If you have any questions or concerns, hopefully they can be addressed on these pages.