When facing serious financial trouble, it's natural to learn more about Chapter 7 and Chapter 13 bankruptcy. You may never go down this path, but the information collected will help you better understand your situation.
The benefits of Chapter 7 bankruptcy are easy to see. For example, if you qualify, you're able to discharge many of your debts. This puts you in a position for a fresh start.
However, you may have some concerns about Chapter 7 bankruptcy, such as the following:
- A Chapter 7 bankruptcy can remain on your credit report for as long as 10 years, making it difficult to obtain a loan in the future
- You can lose nonexempt property
- You will lose your credit cards
- If you file for Chapter 7 bankruptcy now, you can't do so again for six years
- Chapter 7 bankruptcy doesn't eliminate all types of debt, such as student loans
- You're required to discuss your financial situation with the court, which is often awkward
The only way to know if Chapter 7 bankruptcy is a good idea is to compare the pros and cons as they relate to your situation. Once you do this, you'll have a better understanding of whether or not to proceed.
If you decide that the benefits outweigh the potential drawbacks, learn more about the process of filing for Chapter 7 bankruptcy and the information you need to collect to get started. When you combine this with knowledge of your legal rights, you can confidently move forward with the idea of putting your financial troubles in the past.
"Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. -- Thomas C. McBride, attorney in Alexandria, LA."