Updated: 1/27/2022
If you’re on the brink of bankruptcy, there’s a lot you need to know about the process so that you know what exactly to expect. In addition, doing your research about the topic helps you decide the best option for you. Typically, people that are facing bankruptcy have to choose between chapter 7 bankruptcy and chapter 13 bankruptcy. You can also compare bankruptcy 7 vs 11, but chapter 7 bankruptcy is the more popular option, which is why it’s the main focus of this article. When it comes to bankruptcy chapter 7 facts, one of the most important things you need to know is that you can make life easier by hiring a chapter 7 bankruptcy attorney early on. A bankruptcy attorney can help you navigate the process, and they will also answer all your questions related to the process, such as what is the bankruptcy minimum amount or how bankruptcy and credit cards go hand in hand in this scenario. While an attorney can help paint a clearer picture, it never hurts to do your own research. Fortunately, we have done some of the research for you. Keep reading to discover five details you need to know about Chapter 7 bankruptcy.
Making sure you know all you can about bankruptcy can help you through the filing process. When you feel you need to file bankruptcy you should take the time to find out if you are looking for bankruptcy options for credit card debt, for medical bills or for other bills. There different types of bankruptcy, but the most common are bankruptcy 7 and 13. There are bankruptcy income limits chapter 7 sets and there are also limits and parameters that you should follow for chapter 13.
If you are unsure what to do, find a chapter 7 bankruptcy law attorney who will get you the bankruptcy results that you need. Bankruptcy can be difficult, but with the help of an attorney and ample information, you can make the process easier.
If you’re considering filing for personal bankruptcy, you’ll have to choose between two options: Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 7 tends to be much more popular than Chapter 13, but it’s important to make sure that you understand both options before deciding which one will be the best option for your own situation. With that in mind, here’s a quick guide to Chapter 7 bankruptcy:
- Chapter 7 bankruptcy involves liquidation of certain debts, but only after you’ve paid back as much as you possibly can. The court will look at any assets you possess, such as your car or real estate property, and it could use those assets to repay your debts. Once this is done, the remaining debts you owe will be discharged.
- It is important to note, though, that there are certain types of financial obligations which cannot be discharged even under Chapter 7. These obligations include student loan payments and child support payments, among a few other payments.
- Along with (possibly) turning over some of your property, you’ll also be required to undergo credit counseling and learn about how to manage your finances. This is to ensure that you don’t end up in the same situation a few years down the road.
- One major benefit of filing for personal bankruptcy, if you’re being harassed by creditors all the time, is that this immediately stops once you begin the process. It is required by law that all debt collectors stop contacting debtors for payments once the debtor has filed for bankruptcy.
- The consequences of filing bankruptcy should be noted and considered too, and it’s important that you are fully aware of these consequences before your file for bankruptcy. Not only could you be forced to relinquish some of your property, but you’ll also find that filing for bankruptcy hurts your credit score quite a bit. In fact, your bankruptcy could even stay on your credit report for up to 10 years.
Bankruptcy isn’t the perfect solution for everyone, but it might just be the best way to get your finances under control if you’ve been struggling lately.
