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What Should I Know About Filing for Chapter 7?

On Behalf of | May 30, 2018 | Chapter 7 Bankruptcy

If you’re considering your bankruptcy options in Goodlettsville, you may be wondering whether Chapter 7 is the best decision for you. While many people opt for Chapter 7 in order to get themselves back on track financially, it’s important for you to have all the facts before moving forward. That’s why Debt.org offers the following information on Chapter 7 to help you determine whether this option will satisfy you financial needs.

There are a few factors to look at that will help determine whether you’re a good candidate for this type of bankruptcy. For instance, are other areas of life affected by your debt? People in dire financial straits often experience issues within interpersonal relationships or might even develop emotional or mental complications as result. You should also take a close look at your finances. Does your amount of debt rival that of at least half of your yearly income? Do you earn less than other people in your area? Do you have little money left over after paying off your monthly debts? If so, filing for Chapter 7 might be a good choice.

Unsecured debt (such as credit cards or medical expenses) can be discharged by Chapter 7 bankruptcy. That means you won’t be accountable for paying off this type of debt once you are approved by the bankruptcy court. Additionally, you won’t have to worry about assets or possessions being seized, particularly when they are considered necessities (such as your car and home). Some types of debt cannot be discharged, however. Taxes, alimony, and child support payments will remain after the proceeding, as these fall outside the common exemptions.

Filing a petition will be the first step to get bankruptcy proceedings started. This entails providing information on your current financial state, including details of income and assets, tax returns going back at least two years, amount of debt, and any official agreements you’ve entered into. Next, creditors will be given an automatic stay, which means they must cease and desist collection efforts until the hearing has been completed. Once you’ve been granted Chapter 7, you can begin to rebuild your finances with a clean slate. In general, the entire process can take about four months to complete.



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