Sometimes, people find themselves unable to repay the debt they have accrued during their lives. This may be due to a sudden lifestyle change, like a loss of job or a shift in the economy, or it may be due to poor financial planning or reckless spending. Whatever the case, those who are unable to fulfill their financial obligations often need to file for bankruptcy. While both Chapter 13 and Chapter 7 bankruptcies are available, Chapter 7 is the most appropriate option for many people. Hiring a lawyer for guidance and to learn more about Chapter 7 bankruptcy is the best way to make sure the process is completed successfully.
Chapter 13 bankruptcies are often not an option for many people, as partial debt repayment is required and a certain level of income is needed. Therefore, many people file for Chapter 7, in which most debt will be completely eliminated. Some debt, like student loans, may remain after these types of bankruptcies, but each case is different. Lawyers will try to have as much debt as possible eliminated.
Chapter 7 bankruptcy is also much faster than other options. The entire process can usually be accomplished in just a few short months, and it is usually fairly straight-forward and simple with a lawyer’s help. This option is only available for people who make an extremely low income in proportion to their amount of debt and who do not own many valuable assets. Schedule a free consultation with a lawyer today to determine which type of bankruptcy is best for you.
During Chapter 7, a person’s belongings may be sold to help the creditors recoup some of their investment. Essentials to daily life and employment would not be taken, such as a person’s car, but any frivolous or unneeded assets, like boats or expensive electronics, may be repossessed and sold. Having a lawyer helps lessen the effects of these repossessions on a person’s life and ensures the process is fair.
Declaring bankruptcy can be a difficult choice, but it is necessary for a large number of people each year. Anyone considering bankruptcy should hire a lawyer to learn more about Chapter 7 bankruptcy. Chapter 7 is often the best choice, and it can help to eliminate most people’s debt.
