Representing Clients Nationwide
As you consider the potential advantages to filing for bankruptcy, it is helpful to begin learning as much as you can about the two types available to you, Chapter 7 and Chapter 13. Also known as “liquidation,” Chapter 7 bankruptcy is considered the way to go for individuals who have little hope of acquiring the income necessary to repay even a portion of debt.
If you are in a dire financial situation and you don’t anticipate any avenue for repaying your outstanding debts, Chapter 7 may be the best option for you. The bankruptcy attorneys at Chávez Law Group can help explain the rules of Chapter 7 and review your circumstances to see if this option is a good fit.
Filing for Chapter 7 Bankruptcy
With Chapter 7 bankruptcy, your attorney files in U.S. bankruptcy court and asks for a complete discharge of all debt. However, in order to successfully be granted the protections of Chapter 7 bankruptcy, you must meet certain residency requirements, as well as income requirements. As required by law, if you file for Chapter 7, you must also attend credit counseling sessions to help prevent this scenario in the future, and to assist you in beginning to rebuild your credit.
Benefits of Filing for Chapter 7
This option can be ideal for clients who, no matter how much they work, just fall deeper into debt and need a new start. The purpose of Chapter 7 bankruptcy is to help debtors who’ve made mistakes to start over and be able to dedicate their hard-earned income to cost of living expenses, not large debts. You may benefit from filing for Chapter 7 bankruptcy if your debts have become overwhelming and impossible to pay back.
Achieving Chapter 7 bankruptcy status allows individuals to dissolve their debt, which means you will be relieved from the obligation to pay back money owed to creditors. Although filing for Chapter 7 means the majority of your assets become the property of the bankruptcy estate, there are certain allowable exemptions that can protect you from losing your house, car, life insurance, and disability, health, or other benefits. Another valuable advantage of filing for Chapter 7: Your attorney can work to stop debt collectors from harassing you and interfering with your daily life. If your wages are being garnished, a bankruptcy ruling can make this stop as well.
If your bills keep piling up and you don’t see a way out, talk to our experienced bankruptcy attorneys for more in-depth information on the benefits of filing for Chapter 7. Please contactChávez Law Group today for caring bankruptcy advice and help with filing.