Chapter 7 is considered straight bankruptcy and is the only type of bankruptcy that can give you a completely fresh start. If you are behind on your bills and you are having difficulty repaying past due loans, you can come to a bankruptcy attorney’s office to discuss your options. They will walk you through the process and let you know everything that is involved and what you will need to do to move forward and regain control over your finances. Although it may seem like a daunting process, everything is actually really straightforward and your attorney can help you get the debt relief you need.
Getting started with Chapter 7 Bankruptcy
The first part of the process in getting relief from your debts is to consult with a credit counseling agency or bankruptcy attorney’s office. They will look at your finances and debt ratio to determine if you are eligible to file. If you are, then they will request that you are granted a means test and after you pass the test, you will be granted the options of filing for Chapter 7 Bankruptcy. Although there are other types of Bankruptcy, Chapter 7 bankruptcy is the type most commonly filed by many people who are within a certain earning capacity. If you do not qualify to file for Chapter 7, then you will most likely need to file Chapter 13 bankruptcy which requires a payment plan.
How can Chapter 7 Bankruptcy help you?
Chapter 7 bankruptcy can help you in many different ways. If you are facing repossession or foreclosure, these will be halted the moment you file for bankruptcy and throughout the 90 day process. If you can come up with the funds to get current with your loans, you will be able to hold on to your home and your car. The other way that Chapter7 bankruptcy helps you is that you will be able to completely wipe away all of your other unsecured debt except for some tax debt and student loans. This can be very helpful towards attaining lasting debt relief and starting over again.
What Chapter 7 Can’t Erase
There are certain types of debt that Chapter7 bankruptcy can’t erase and these include child support, alimony, liens, drunk driving, student loans, and other secured debts. If you have these types of debt and you are seeking a new start, Chapter 7 bankruptcy may not be the best option for you. A consultation with an attorney can provide you with insight about which types of debt you can erase with a Chapter 7 bankruptcy filing.
For more information about filing for Chapter 7 bankruptcy, consult with the professional attorneys of Chris Carouthers and Associates, LLC. Follow us on Twitter and get latest updates.
