A Little Advice For Those Considering Chapter 7 Bankruptcy

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If you are in a touch financial situation, you may be considering Chapter 7 Bankruptcy.
Before you move forward, consider several alternatives first.
If your financial pressures are due to Credit Card or other debt, consider debt consolidation or working with a financial counselor.
You may have already taken those steps and find no other options than bankruptcy.
Chapter 7 bankruptcy may help you in eliminating most kinds of unsecured debt.
Examples of these debts are credit cards; personal loans, judgments, and medical bills.
Most of the time, you can keep your property.
You must be current on your car and mortgage payment.
In addition, the courts will assess the amount of equity you have in your current property.
If you have significant equity, you may be asked to leverage your equity to pay your debts first.
The goal with Chapter 7 is to eliminate your debt while keeping your personal belongings.
There are some key facts that you need to know before you commit to Chapter 7 bankruptcy.
Here are a few answers to common questions for those filing for Chapter 7.
Please read further.
Will creditors continue to harass me? You will want to retain a Chapter 7 Attorney immediately.
By working with a specialized attorney, they will immediately give you a record number.
When the creditors call, you can give them your record number and refer them to your attorney.
Will I lose everything if I file for Chapter 7? Typically, you will retain all your personal belongings, including your house.
A good Chapter 7 lawyers will insure that your personal effects are safe.
Most often your car will be safe as well.
Your attorney will leverage state bankruptcy exemptions to protect these items.
More often than not you will be more at risk in losing your personal property if you do not file for Chapter 7 to protect them.
Make sure you file before you get so far behind that you cannot do anything and get out of the rut you find yourself in.
Will everyone know I have filed for bankruptcy? The short answer is no.
The only parties that will know are the IRS, creditors, and the bankruptcy court.
Your employer will not be notified when you file for bankruptcy either unless they are also a creditor of yours.
Your bankruptcy is public record but no notifications will be made.
How do I know if I should file for Bankruptcy? If you are currently facing the repossession of your car or home, you will be better off considering Chapter 7.
This will be a better alternative and you should move now before it is too late.
How do I choose a good Chapter 7 Attorney? If you are considering Chapter 7, you must find a specialized Chapter 7 attorney that understands the laws and is current on any changes that my impact your situation.
When you call a bankruptcy attorney ask them how many bankruptcies they have handled in your state.
Make sure you educate yourself on all your alternatives.
You can easily do a quick search on the internet and do some quick research before you hire and commit to an attorney.
Most legitimate bankruptcy attorney's will be able to give you a fair assessment over the phone.
Make sure you share the facts with your situation.
Many times people are embarrassed of their situation and they hide the facts.
This will only prevent an attorney from helping you fast and getting the process underway.
We cannot stress enough the need to get several assessments of your situation.
This is key in not only getting the right advice, but also to make sure you get an attorney that is sincerely in the business of helping you.
Will I ever get credit again? Bankruptcy will be reported on your credit report for up to 10 years.
That said you can start right away in establishing your credit.
Lenders typically consider your debt to income ratio as well your credit history.
Filing for Chapter 7 helps you eliminate your debts, but also helps in reducing your debt to income ratio as well.
This does help in establishing good credit for you in the future.
Creditors are in the business to make money by lending you money.
Remember this and you will be able to find a lender that will sell you money in your situation.
There are lenders in the business of helping people in your exact situation.
You may not get the best interest rate, but you have to start somewhere.
Remember, you can only file for bankruptcy every six (6) years.
Don't find yourself in the same situation again! If you need financial counseling, don't be embarrassed.
Learn how to manage your income, and your debt after your bankruptcy and you will be on your way to a clean financial bill of health.
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