When you are faced with mountains of debt and no easy way out, it may be time to consider filing for bankruptcy. This can be a scary prospect for many people, but if you talk to an attorney, you can learn whether it is the right option for you. For many people who are facing large amounts of debt, especially if there is little secured debt, filing for a Chapter 7 bankruptcy may be the best option.
What Is Chapter 7 Bankruptcy?
Many people don’t realize there are differences in the types of bankruptcy you can file. When you are looking to completely discharge your debts, you are looking at a Chapter 7 instead of a Chapter 13. With this type of bankruptcy, you will be able to lump most of your debt together and get it all discharged with your creditors so you no longer owe anything. It is important to talk to an attorney, though, to find out which debts are exempt from this.
There are some things you can keep out of a bankruptcy, as well as some you must keep out. For instance, student loans and child support obligations cannot be discharged in bankruptcy. If you have a home or vehicle, life insurance with a cash value, household furnishings and your clothing and other similar personal belongings, they can all be kept out of the bankruptcy in many cases. A qualified bankruptcy attorney will help you figure out what you can and should keep out.
Do You Qualify?
Not everyone automatically qualifies to file for a Chapter 7 bankruptcy because of the amount of their debts. This is why it is so important to talk to an attorney who specializes in bankruptcy. The amount of money you make at your job, as well as your assets, can all play a role in whether you qualify for this type of bankruptcy. If you don’t qualify, you may still be able to file for a debt restructuring under a Chapter 13 bankruptcy instead.
One of the biggest fears people have with filing bankruptcy is fear of the unknown. With all the myths floating around, such as difficult restrictions that make it impossible to file and repossession of everything you own, can frighten people away from talking to bankruptcy attorneys about their situation. However, once you have spoken with an attorney, you will be better prepared to make the decision and file for a Chapter 7 bankruptcy if your situation warrants it.
To learn more about how you can qualify for a Chapter 7 bankruptcy visit the Vance P. Truman