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3 Reasons You Should File for Chapter 7 Bankruptcy

3 Reasons You Should File for Chapter 7 Bankruptcy
"""Although the decision to file for Chapter 7 bankruptcy can be discouraging for some, it is often necessary to do so. This type of bankruptcy is typically the best option when your debts become unmanageable and there is no way out from under them. Consider the top three reasons why you should pursue this course of action, and then schedule a consultation with a Chapter 7 bankruptcy attorney.

Your Debt Starts Fresh

Once your order has been discharged, your debts will be eliminated and you will have the opportunity to reestablish your credit. This means that no repayment plan will be required, and you will owe nothing on your debts once your bankruptcy is discharged. However, there are a few exceptions to this rule. Chapter 7 bankruptcy cannot be used to discharge the following debts:

Student Loans to Pay Child Support
Alimony Taxes
Fraudulent Debts
Some Liens

You Keep Your Earnings

As your Chapter 7 bankruptcy attorney will explain, you will be able to retain your income once your order has been discharged. If you receive property as a result of a divorce, enter into a settlement agreement, receive death benefits, or inherit something of value, only then will your funds be withdrawn. If you intend for any of these to occur, you will need to consult with your attorney to determine which documents you must disclose to the court in advance.

No Dollar Amount Limits

Unlike Chapter 13, no specific value is required to petition for Chapter 7 bankruptcy. This means that regardless of the amount of debt you have, you can petition to have it eliminated. Once the debt has been discharged, these items will be removed within sixty to ninety days. That means you can start the next chapter of your life without worrying about negative marks on your record for the next seven years. Keeping in mind that all post-bankruptcy debt will be ineligible for removal for an additional seven years due to the number of times you are legally permitted to apply for this.

Take a moment to consult with a Chapter 7 bankruptcy attorney if you are unsure if this is your best option. They will walk you through the entire procedure and help you determine if this choice is the best one.

Remember that Chapter 7 bankruptcy is designed to assist those who have exhausted all other financial options. The necessity of filing varies from person to person, but when you work with an experienced attorney, you can rest assured that all of your debts will be discharged accordingly.""

" - https://www.affordablecebu.com/

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"3 Reasons You Should File for Chapter 7 Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 142 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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