Filing for chapter 7 can provide you with the financial relief you require, especially if you owe creditors large debts. Therefore, when you consult a lawyer for guidance before declaring bankruptcy, there's a good chance that they will recommend this type. However, they will evaluate your situation first to determine whether you have a chance of qualifying and the bankruptcy type that will offer the best relief. Your legal advisor may suggest filing chapter 7 for the following reasons.
It Will Provide The Relief You Require
Declaring bankruptcy should protect you from nagging creditors, and chapter 7 can do that. After the court approves your application, the judge will issue a directive instructing all your creditors to stop contacting you and demanding that you clear your debts. Besides, the court will discharge your credit card balances and unsecured debts that are not attached to any collateral. That will get the weight off your shoulders because you will not be required to pay the debts even in the future. Because of this, you will get a fresh start and get back on your financial feet.
It Will Protect Assets and Your Future Income
Many people fear that they might lose their assets and future earnings after declaring bankruptcy. However, that should be your least worry when your lawyer recommends that you file chapter 7. You can keep your assets, including your vehicle, house, and jewelry. In addition, it will protect your future income and property, including money or assets you might inherit or get after a divorce or settlement agreement. You can also keep death benefits and life insurance policy payments. An attorney has dealt with bankruptcy applications previously and will prepare the application for you to enable you to save as many assets as possible.
It Can Eliminate All Your Debt
Chapter 7 doesn't limit the total amount of debt you can discharge, making it one of the preferable bankruptcy types. In fact, it can eliminate all your debts if the court approves your application. This varies from chapter 13, which can only discharge a certain amount of debt. This means that in this chapter, you'll be ineligible to file an application if your debts go beyond the set limit. Nevertheless, chapter 7 will eliminate all debts regardless of how much you owe your creditors.
Contact a legal advisor for guidance if you've decided to declare bankruptcy. They will examine your case and recommend the most effective bankruptcy type for your situation. They may recommend chapter 7 for the reasons highlighted above.
Get in touch with a firm like McManus & Associates for more info.