Looking for a way to clear out current debts that you have? It could be a good reason to look into using Chapter 7 bankruptcy. Before you dive deep into this process, you likely have some questions about what is to come. Here are three of those questions that you may have.
Do You Need A Lawyer To File For Bankruptcy?
If you think you can handle a bankruptcy filing on your own, you're making a big mistake for such an important legal process. While it is possible to file for bankruptcy along, it is recommended to use the assistance of a lawyer to walk you through it all.
A lawyer will start by finding out what debts you owe and how serious they are. Their first goal will be to try to settle debts without using bankruptcy, especially if you have one large debt that can be worked out with a creditor. That's because there is an impact that bankruptcy has on your personal credit report that lasts for several years, and it can affect your borrowing power in the future.
Can All Debts Be Discharged With Chapter 7 Bankruptcy?
While you may have hopes of all of your debts being wiped away by using bankruptcy, be aware that some will not go away. There are certain debts that you must pay no matter what, which include alimony and child support payments.
In addition, there are some loans that have a chance of being discharged, but will be very difficult to do so. If you are looking to get rid of back income taxes, know that you'll have to prove your case to a judge as to why you want to have the taxes discharged. The same goes for student loans.
When Is Debt Consolidation Recommended Instead Of Bankruptcy?
When you don't have a lot of debts that are owed, it's possible that your lawyer will recommend using debt consolidation rather than bankruptcy. This will help you avoid dealing with all of the financial downfalls that come with bankruptcy, while still combining debts into a monthly payment that you can afford. The debt consolidation process also allows you to rebuild credit by paying those debts off.
Still have questions about filing for bankruptcy? Reach out to a local lawyer in your area with a bankruptcy law firm, since they'll be able to walk you through the entire process and make sure no mistakes are made.Share
30 January 2019
Hello, my name is Neil Gamford. Welcome to my site about bankruptcy proceedings. After my divorce, I was left near penniless and without a place to stay. I was paying all of my income to alimony and my remaining debts. Although I had a solid payment plan in place, it was getting difficult to cover my financial obligations without a home. Luckily, I met with a bankruptcy attorney, who helped me find a way to discharge my debts and start over. I hope to share the information I learned throughout that process with you through this site. Please feel free to visit anytime.