Life is unpredictable, and so are finances. Make a few bad decisions, and you may end up in a debt situation with no signs of relief. Just because your financial situation is messy, you don’t end up giving up everything you have. Bankruptcy should be your last resort, not the first one. If you can negotiate with your creditors successfully, you may have a good plan to repay your debts. Chapter 7 bankruptcy could be a choice for people, who don’t have enough assets or inflow of income. No matter your circumstances, you must speak to a bankruptcy attorney in Charleston, WV, to know the pros and cons of Chapter 7 for your unique financial situation. Here is an overview of Chapter 7 bankruptcy at a glance.
Chapter 7 bankruptcy can get rid of your loans and debts, and you can restart your financial journey from scratch. Simply put, this is a debt-relief option that will liquidate what you own to repay your creditors. It is the fastest form of bankruptcy and wipes out various types of debts. There are also limitations to debts that can be discharged through Chapter 7. It is possible to erase most personal loans, medical bills, credit card bills, and other unsecured debts. Exceptions include unpaid state and federal taxes, alimony, child support, and student loans.
Why should you get an attorney?
Bankruptcy is not just about erasing your debts. It is a huge financial decision, which can appear on your credit report for ten years, which means you may not be able to get unsecured loans easily. You may still retain some of your assets, including your car and house, provided you can pay the installments on time. A bankruptcy attorney can offer insight into your existing situation and how things may change when you file for bankruptcy. They can help in understanding the immediate relief you can expect, but also how bankruptcy can impact your financial situation for the next few years. Attorneys have the experience and understanding of the financial & legal system, and depending on what you owe and own, they can guide on whether this is the right choice of action.
Chapter 7 bankruptcy may offer some immediate relief in a bad debt situation, but the decision should be based on facts, not merely because you didn’t try other options. Talk to an attorney in depth before you take a call on bankruptcy or choices like debt consolidation.