Filing For Chapter 7 With a Bankruptcy Lawyer

It can be overwhelming to deal with incredible debt. The credit card companies and banks are calling you several times a day demanding money that you just don't have. You've tried to secure gainful employment but you still find yourself living paycheck to paycheck and putting off paying bills so you can put food on the table. When life becomes too stressful, you may be thinking about your option for bankruptcy. The first step is to speak with a bankruptcy lawyer to help you discover what your options are.

For most people, Chapter 7 is the kind of filing status their looking for. Chapter 7 is also called liquidation bankruptcy. This status helps to liquidate your assets, or convert everything you own into a monetary value - into actual money. This money is then used to pay off your debts in part or in full. Once everything has been liquidated and as much has been paid off as possible, your record of debt will be wiped clean and you will start for scratch.

When working with a bankruptcy lawyer, the first thing that needs to happen is analysis of your current debts and assets. This will help a lawyer understand if filing for Chapter 7 is right for you. Most often if your debts are higher than your assets, this is a clear indication that this filing status will work best for you, especially if your debts are significantly higher in value than your assets. With Chapter 7, once you liquidate all assets, you will not be required to pay more than you own currently.

For example, let's say you owe $100,000 in debt but you only own $75,000 in assets. After your assets are liquidated, the additional $25,000 is forgiven and you will not owe that money. It's a very simplistic way to look at how the system works but it can give you an idea of what you're in for. Most people have significantly more debt than $100,000 when they're looking in to Chapter 7 bankruptcy. Most understand that they will loose their most valuable assets, like their home.

When you're working with a bankruptcy lawyer, try to find one that not only supports you professionally with swift resolutions and favorable outcomes. It will also be important to have a supportive, compassionate lawyer by your side during this difficult time. Liquidating your assets can be a difficult process to go through, especially if you're also married or you have a family. The best lawyers for the job are once that considers all your legal and emotional needs, by helping you cope with compassion and support while also expediting the process so that a resolution is found quickly. In some cases, if your assets are somewhat greater than your debts, you can try to retain your most significant assets in order to start fresh without having to start from square one.

The first step is finding a lawyer. Make sure to do your research to find a reputable, cost effective bankruptcy lawyer that you are comfortable with and confident in.