Why Should One File for Chapter 7 of Bankruptcy

0
2

Filing for bankruptcy was few years back was considered very shameful few years back, but things have changed over years. Today it is very not unusual to hear someone file for bankruptcy. Even if it is very common these days, but still filing bankruptcy should be considered as a last option. If one finds no way out to tackle the financial crisis, then to stop letting things get worse it is better to file for bankruptcy. Bankruptcy can be under different chapters. One chapter which is filed commonly is Chapter 7.

Under the Law of Bankruptcy
Under the Law of Bankruptcy

Why Opting For Chapter 7 Is Good

When you have high debts which are impossible to pay and you cannot handle the pressure of creditors asking for payments. Then one way to stop this is to file for chapter 7. When you file for chapter 7, all your creditors are informed about the filing and hence this stops them from sending out notice or asking for payments. All the assets are sold to pay off your creditors, which allows you to give a fresh beginning, without having to worry about your debts in past. However chapter 7 does not necessarily sell off all your property, there is a provision for exempt property under the law of bankruptcy, which is not dissolved in bankruptcy, the calculation of exempt property is different in different states. Chapter 7 affects the credit report for a term of ten years after filing. However with frequent payments of your bills during the term of ten years can affect your credit report and lenders might consider providing credit. When you have pressure of paying money, you have no choice but to pay the money to creditors and then you cannot afford to meet your necessary expenses like food, medicines, bills and other necessary stuffs. One advantage of filing chapter 7 is that this case closed within the time span of three to six months, and this helps person get free from worries of debt in very short time, however some debts still stay like recent tax, carry payment and mortgages. For those who have not much property to loose and can start fresh easily after getting rid of burden of debts, chapter 7 can be a better option. There are many who might consider that chapter 7 is not the right option but it depends on the situation the debtor is in, when debtors has no means to pay and not much to lose it is preferable to go with chapter 7. Why keep filing delayed when you are going through a very difficult phase and find no where to find the resort, moreover when a filing can help you give a fresh start, then it can be very helpful to you. There are various ways to file, like Federal Bankruptcy forms that come in form of Ms word or Adobe Acrobat, Bankruptcy software that is more of interaction based, that questions the debtors and asks for details relating to filing, like name address, and list of creditors, and then after that the relevant filing forms are send through email, then one option can be to file via Bankruptcy attorney, filing through bankruptcy attorney is beneficial in many ways, they can guide you if file a certain chapter would be helpful or not and can suggest the right time to file. At Phoenix Chapter 7 Attorney, you get the best service, and with many successful cases. You can be stress free after consulting and hiring Phoenix Chapter 7 Attorney.

Consult with Bankruptcy Attorney
Consult with Bankruptcy Attorney

There have been many changes in law, regarding chapter 7, before filing it is important to keep yourself informed about it, as it can avoid any problems and hassles later.