Should You File For Chapter 7 Bankruptcy?
Chapter 7 is the most common type of bankruptcy in the United States. If you file a Chapter 7 bankruptcy, assets that are not exempted or protected under Pennsylvania or federal guideline limits would be liquidated to pay your creditors. It is at that point that any remaining debts over and above that would be discharged. Chapter 7 can be the first step in getting a fresh financial start.
If you have questions about bankruptcy or need legal assistance in filing, contact the experienced attorneys at Rick Law. We can guide you through the process from start to finish, protecting your rights and interests along the way.
Who Is A Good Candidate For Chapter 7?
Chapter 7 may work for you if:
- You own little or no property
- You have an income level that falls below the means threshold
- You have mostly unsecured debt
- You can’t commit to a repayment plan for the next three to five years.
Qualifying individuals can file for Chapter 7 bankruptcy, and businesses can do so, as well, so that they can liquidate assets to cover debts.
The Numerous Benefits Of Chapter 7
Here’s why Chapter 7 can be so helpful:
- It is a quick (four to seven month) process
- There is no minimum debt limit.
- It eliminates most of your unsecured debts and some secured debts
- It stops all creditor calls or collection attempts
- It doesn’t require a repayment plan
- Creditors may no longer garnish your wages or demand payment or file lawsuits against you
- It gives you a fresh start for many of your debts
About 40 days after filing your petition, a meeting with your creditors occurs. You will have to attend this meeting and will have to answer questions asked by a trustee appointed by the court.
Carefully Weigh The Downsides Before Deciding
Here are other important things to keep in mind regarding Chapter 7 bankruptcy:
- There is a restriction to filing another Chapter 7 for eight years
- Requires you to liquidate or sell all nonexempt assets to pay back creditors
- Co-signors of your debt could remain liable for the full amount of the debt
- It only temporarily halts foreclosure on your property
- There is a significant amount of paperwork required to start the process.
- Potential tax concerns
- Some debts are nondischargeable
- Impacts your credit score for up to 10 years
There is no substitute for case-specific advice, which is why you should speak with an attorney like those at our firm.
We Can Discuss Your Options In A Free Consultation
If you are interested in seeing if you qualify to file bankruptcy, you should get in contact with an experienced bankruptcy attorney at 610-850-9036. We can help you avoid common mistakes made by many as they look to achieve financial freedom. To get started, call 610-850-9036 or submit an online contact form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.