In a continuation of series on filing for bankruptcy, in my previous blogs, I already discussed a lot of topics on bankruptcy here I am taking a look at chapter 7 bankruptcy. While there are numbers of chapters to file for bankruptcy, the most common are chapter 7 and 13. Chapter 7 is the most common form of bankruptcy it is useful for personal bankruptcy and helpful to save your home or a car.
It does not much harder to get rid of debt instead of drowning in debt and at the end, you completely stuck in debt. If you are facing this problem then don’t worry you are not alone. In fact, millions of people are facing this problem because they take debt due to different circumstances like job loss, massive student loan, and unexpected medical bills.
The debt is not gone alone, and there are other situations where violent action takes place to deal with debt. One option we discuss her is, file for chapter 7 bankruptcy. Below, we examine a few reasons why you would like to consider this option.
Are you harassed by credit providers?
When you stop paying your debt than creditors make calls to you, in the start, their behavior will be good but after a tow to three months they will harass you and it can cause extreme stress and anxiety. You can also feel embarrassed when they come to your office or home to take the collection and sometimes you don’t answer your phone due to stress. In some cases, you feel fear of your safety and freedom. Filing for chapter 7 bankruptcy will help you to stop creditor harassment.
Qualifying for chapter 7 bankruptcy
Before filing for chapter 7 bankruptcy you have to qualify for this program it depends on your financial condition. If your average income of 6 months is less than your state’s median income you automatically eligible to file for bankruptcy. One more point is considered to measure the eligibility criteria is that your debt should be dischargeable a term dischargeable is indicating that if your debt is not in the form of such debts that are not considered under chapter 7 bankruptcy then you will never get rid of debt. Certain type of debts: personal loans, credit cards, medical bills, and personal injury claims are dischargeable and chapter 7 can free you from these debts. Understand though, that you will still be responsible for paying non-dischargeable debts.
Save your home and valuable assets
Once you have been approved for filing, After providing proof of all assets and other documents the court also provide stay on all debt collections activity and foreclosure proceedings after that you can continue living and working safely, including a vehicle, your home, bedding, and home appliances will be at least temporarily save from pursuing foreclosure proceedings. To discuss this in detail, you have to consult with your bankruptcy lawyer.
The fact is that Chapter 7 bankruptcy or even other forms of bankruptcy may not be suitable for everyone. However, it can be helpful for people all over the state to reduce pressure on the debt and make a new start of financial.
To discuss debt relief solutions including bankruptcy, you should consult a bankruptcy lawyer who can help you understand your options and make an informed decision on how to proceed.