Four Facts About Chapter 7 Bankruptcy You Need to Know Now
Most, if not all people have debt.
However, having so much debt that you’re taking out more loans and using credit cards to make your debt payments is a sign that you have too much debt for you to manage — and at this point, your best bet may be to contact a Chapter 7 bankruptcy attorney for help with filing bankruptcy. In 2013 alone, more than half a million individuals chose to eliminate their debt this way.
But what is Chapter 7 bankruptcy, really?
It can be tough to tell the differences between Chapter 7 bankruptcy and other types of bankruptcy. These four essential Chapter 7 bankruptcy facts should help you learn all you need to know:
A Chapter 7 bankruptcy will end creditor harassment
A common experience people face when they have mountains of debt is constant phone calls from debt collectors and creditors. But did you know that as soon as you hire an attorney to help you file for bankruptcy, the calls will cease immediately? The peace of mind alone is reason enough for many people to file for bankruptcy.
You will have to turn over some, but not all, of your property
Chapter 7 bankruptcy typically requires individuals to give over some of their possessions in exchange for liquidating their debts. However, federal bankruptcy law allows people to hold on to essentials such as a house and car during their bankruptcy.
Chapter 7 bankruptcy will affect your credit score
Filing a Chapter 7 bankruptcy has long-term consequences for one’s credit — it remains on an individual’s credit score for 10 years after the filing is approved by a bankruptcy court. However, many people don’t know that getting approved for credit after filing for bankruptcy is actually not difficult — it will just come with higher interest rates and less favorable terms.
Chapter 7 bankruptcy is the only way to permanently eliminate your debt and start anew
If you’re looking for Chapter 7 bankruptcy facts, it’s probably because you want a way out of crushing levels of debt — and that’s what a Chapter 7 bankruptcy can provide. Except for student loans and a few other types of debt like child support and alimony, a Chapter 7 bankruptcy effectively eliminates all your debts so you can start rebuilding your financial future.
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