If you’re facing serious debt issues, it can be a very stressful experience. For some, filing for chapter 7 bankruptcy can help them get out of trouble. But this might not be right for everyone. Let’s take a closer look at this issue to help you decide if this approach is right for you.
What Is Chapter 7 Bankruptcy?
This form of bankruptcy essentially acts as a reset button for most of your debts. If successful, you’ll often be able to stop creditors from coming after you. However, you might still need to make certain payments, such as government debts or tax bills. In most cases, it’ll take between 80 to 100 days to be approved. Also, you should be aware that this type of bankruptcy is means-tested, which means that only certain people will qualify.
How Can I Apply for Chapter 7 Bankruptcy?
If you feel that this type of bankruptcy will apply to you, be sure to get in contact with a bankruptcy attorney Chatsworth, CA. Our team can guide you through the paperwork that you need to fill out, making sure that everything has been done correctly. We’ll also represent you during the court process, making sure that you are treated fairly.
Once you file for bankruptcy, you’ll often need to fulfill certain obligations. For example, in most cases, you’ll need to attend a financial management course, which will help you prevent future money problems.
What Are Some Drawbacks of Chapter 7 Bankruptcy?
While chapter 7 bankruptcy will get more types of debt forgiven, there are a few drawbacks that you should know. First, while the creditors usually won’t be able to take your property, you may lose your stocks and other forms of investment. In some cases, the lender could place a lien on your house. So, if you decide to sell, they will take a percentage of the proceeds. Also, as we mentioned, you may need to continue paying certain types of debts. During your consultation with a bankruptcy attorney in Barbara, CA, we can give you a better idea of some of the potential consequences that you can face.
This type of bankruptcy will also impact your credit score, staying on your credit report for around ten years. Though you could still be able to get a loan, you may need to be prepared to pay higher interest fees. If you make sound financial decisions, such as playing future bills on time, you’ll be able to improve your score slowly.
Filing for Chapter 7 Bankruptcy
If you consider filing for Chapter 7 bankruptcy, you need to be sure that you obtain legal advice. This strategy will allow you to be sure that everything has been done correctly, and that you meet all your obligations. In this area, the Law Offices of R. Grace Rodriguez provide exceptional service. Our team has a long history of helping people file for bankruptcy. So, call us today and book a free consultation to see how we can help you take control of your financial future.