Whether or not someone should file bankruptcy is a big question. Everyone's financial situation is different so this requires a lot of careful consideration. When determining if bankruptcy is the right choice for you, there are some things to consider. If you have a large amount of debt that is making it impossible for you to pay your regular monthly expenses such as your mortgage, food, utilities, etc., then you may consider bankruptcy. If you stopped charging on all of your credit cards and made the minimum payments, if you could not have the debt paid off in 5 years then bankruptcy is a viable option for you. If you are experiencing tremendous stress from aggressive creditors that are constantly calling to collect money that you can't afford to pay, then you should consider filing Chapter 7 bankruptcy.
When you file for Chapter 7 bankruptcy it allows you to get a fresh financial start and have all of your unsecured debt discharged. Unsecured debts include credit cards, gas cards, cell phone bills, store charge cards, medical bills, personal loans, and payday loans. Once an individual's unsecured debts are wiped out, they may be in a better financial position to allow them to get caught on their mortgage or car payments. If they can afford it and want to keep a secured item or property such as their home or car, then they can reaffirm that debt and keep it. Filing Chapter 7 bankruptcy can temporarily stop foreclosure on your home until the individual has a chance to work out with their bankruptcy attorney if they want to keep their home or surrender it in the bankruptcy and have any deficiencies wiped out in the discharge. When someone files a Chapter 7 bankruptcy rarely do they lose any personal assets since their bankruptcy attorney will use all of the applicable exemption laws to benefit their client and prevent any forfeiture of assets to the court. Filing bankruptcy will also put an immediate stop to all collection attempts by the creditors through the automatic stay. The automatic stay is a powerful legal tool to give the debtor some breathing room and peace of mind while the bankruptcy case is proceeding. If a creditor violates the automatic stay they can face harsh penalties and fines from the court.
In a nutshell, filing bankruptcy can have many benefits for the financially overwhelmed individual. You will find that filing Chapter 7 bankruptcy is usually a fairly quick process that takes about three to six months in most cases. After that, the individual will emerge from bankruptcy virtually if not completely debt free.
When you file for Chapter 7 bankruptcy it allows you to get a fresh financial start and have all of your unsecured debt discharged. Unsecured debts include credit cards, gas cards, cell phone bills, store charge cards, medical bills, personal loans, and payday loans. Once an individual's unsecured debts are wiped out, they may be in a better financial position to allow them to get caught on their mortgage or car payments. If they can afford it and want to keep a secured item or property such as their home or car, then they can reaffirm that debt and keep it. Filing Chapter 7 bankruptcy can temporarily stop foreclosure on your home until the individual has a chance to work out with their bankruptcy attorney if they want to keep their home or surrender it in the bankruptcy and have any deficiencies wiped out in the discharge. When someone files a Chapter 7 bankruptcy rarely do they lose any personal assets since their bankruptcy attorney will use all of the applicable exemption laws to benefit their client and prevent any forfeiture of assets to the court. Filing bankruptcy will also put an immediate stop to all collection attempts by the creditors through the automatic stay. The automatic stay is a powerful legal tool to give the debtor some breathing room and peace of mind while the bankruptcy case is proceeding. If a creditor violates the automatic stay they can face harsh penalties and fines from the court.
In a nutshell, filing bankruptcy can have many benefits for the financially overwhelmed individual. You will find that filing Chapter 7 bankruptcy is usually a fairly quick process that takes about three to six months in most cases. After that, the individual will emerge from bankruptcy virtually if not completely debt free.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
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