What You Should Know About Filing for Chapter 7 Bankruptcy

If you are having a problem getting your finances in order and are in need of some financial relief, you may want to consider filing for Chapter 7 bankruptcy. If you are facing an impending foreclosure, wage garnishment or repossession, you may want to consider filing for bankruptcy. Bankruptcy gives you an opportunity to get some much needed protection from your creditors. You can start fresh financially and avoid making the same mistakes that caused you to go into financial distress.

You should not use chapter 7 bankruptcy as a means to avoid paying your debts if you are just being lazy and irresponsible. You are only allowed by law to file for bankruptcy one time every six years, so you want to make sure that if you are going to file, it is your last resort for help. And even though you have the option of filing for bankruptcy, you may not be eligible if you do not have any property that is considered to be nonexempt or no wages for income. If you do not have anything for your debtors to collect from you, then you will not be eligible for a chapter 7 bankruptcy.

The best way to determine if your financial situation is serious enough for you to consider filing for bankruptcy, you will want to consult with a bankruptcy attorney. Laws are being changed on a regular basis and an attorney will be able to assess your situation and provide you with the assistance you need. They can tell you if you make a good candidate for bankruptcy and guide you every step of the way. It is not an easy process and if you are not familiar with all of the legalities, your attorney will make sure that everything is taken care of properly.

A bankruptcy cannot get rid of all of your debt obligations erased. It can however, get most of your obligations discharged. Chapter 7 allows you to get your debts discharged, but you will have to give any properties that are ruled to be nonexempt to your creditors. The only properties you will be allowed to retain are the items that you have not fallen behind on payments on. You have to keep making your payments on time as well.

Filing for chapter 7 bankruptcy is not the end of the world. Bad debt and collection judgments will stay on your credit history for seven years. A bankruptcy can remain in your credit history for up to ten years. If you have been struggling to pay your debts off for a long period of time and still have not been able to improve your financial situation, then you are not hurting it any further by seeking a bankruptcy judgment. There is still life after filing for chapter 7 bankruptcy. It is still possible for you to receive credit and rebuild your credit profile. You may be charged a higher interest rate, but if you take what you learned and experienced throughout you bankruptcy experience, you will be a much more financially responsible person.