For people struggling to pay back huge amounts of debt, Chapter 7 bankruptcy is often the best solution. Not many people know a lot about Chapter 7 bankruptcy, which is why so many people are misled to believe bankruptcy is a bad thing. If you’re looking for a solution to your debt problems, don’t be afraid to consider bankruptcy.
Should I File Chapter 7 Bankruptcy?
Chapter 7 bankruptcy essentially offers most people who file a chance to start over. There are a variety of benefits to filing bankruptcy, including:
- Most, if not all, of your debts will be discharged, meaning they’re gone forever.
- The automatic stay, which puts an immediate halt to all collection, repossession, and foreclosure actions taken against you as soon as you file.
- You can start rebuilding your credit after filing. Discharged debts will no longer damage your credit score.
- Chapter 7 bankruptcy typically only takes three to six months from start to finish.
What Kinds of Debt Can Be Discharged?
Most debts are dischargeable in Chapter 7 bankruptcy, including:
- Credit card debt
- Medical bills
- Income taxes more than three years old
- Personal loans
- Car loans
Federal student loan debt is dischargeable, but only in extreme circumstances. For most people, it is not possible to discharge student loan debt unless they can show undue hardship.
Will I Have to Give Up My Stuff?
When you file Chapter 7 bankruptcy, your case will be assigned a bankruptcy trustee. The trustee will be in charge of evaluating your possessions and selling anything they can in order to repay as much of your debt as possible.
However, most people who file Chapter 7 bankruptcy never have to give up anything. There is a great deal of generous bankruptcy exemptions that can be used to protect your possessions from being auctioned off. With the help of a bankruptcy attorney, you are likely to find enough exemptions and loopholes to prevent losing any of your assets.
What Do I Have to Do After Filing Bankruptcy?
Before you can receive a bankruptcy discharge, you will have to complete both a credit counseling course and a debtor’s education class. Also, you will have to attend a 343 meeting, or a meeting of the creditors, where you will sit down and talk about your debts and bankruptcy plan with representatives of the people you owe money to.
The Lewisville bankruptcy attorneys at Shuster Law Firm PLLC have been helping people reach financial peace for years, and are here to do the same for you.