Stop Kicking the Can Down the Road - File Chapter 7 Bankruptcy
"Each year, millions of Americans find themselves in situations over which they have no control, such as the loss of a job, a severe illness with astronomical medical bills, a divorce, or another unforeseen event that incurs substantial expenses. Perhaps the person simply overextended their credit by living beyond their means, resulting in severe financial difficulties. Regardless of the reason, Chapter 7 bankruptcy can provide relief to many individuals in dire financial situations.Chapter 7 bankruptcy is especially beneficial for those who are mired in unsecured debt. Credit card debt, medical bills, past-due utility bills, and personal loans are examples of unsecured obligations. Chapter 7 bankruptcy, also known as standard bankruptcy, is a liquidation proceeding. This refers to the trustee's ability to liquidate or sell any assets or property not protected by the bankruptcy filing in order to distribute the proceeds to the creditors. Remember that bankruptcy was not established as a form of punishment for financially struggling individuals. The purpose of bankruptcy was to provide honest, hard-working individuals with a means to eliminate overwhelming debt and start over. Because of this, exemptions were added to the bankruptcy code, which are federal and state laws that enable debtors to keep a certain amount of personal property when filing for bankruptcy.The majority of states have fairly generous exemption laws, and with the assistance of an experienced bankruptcy attorney, the vast majority of individuals lose little or no property. In addition, once the bankruptcy petition has been filed with the court, the automatic stay goes into effect, promptly halting creditors and debt collectors. This means creditors will no longer harass debtors. Additionally, the automatic stay will halt lawsuits, garnishments, judgments, and foreclosure proceedings. This will provide the debtor with breathing room to regroup and formulate a plan to get their life and finances in order. From start to finish, a Chapter 7 bankruptcy typically takes between three and six months, after which the debtor is debt-free or nearly so.To fully benefit from the clean slate that Chapter 7 Bankruptcy provides, an individual must be truthful with themselves and not conceal their head in the sand regarding the gravity of their financial situation. For grievous financial issues, kicking the can down the road in the hope that things will improve is not the best solution. The longer a person waits to take action and address a problem, the more detrimental it can be for them in the long run. Today's creditors are employing extremely aggressive collection strategies, including immediate legal action. Why wait until your wages are garnished or a lawsuit is filed against you? Consult with a bankruptcy attorney as soon as possible to avoid anxiety, sleepless nights, and the risk of losing additional money or property to creditors as a result of legal action. The sooner a person takes action, the sooner they can enjoy a fresh financial beginning.
" - https://www.affordablecebu.com/
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"Stop Kicking the Can Down the Road - File Chapter 7 Bankruptcy"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 31 May 2023
and updated on 31 May 2023