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Know the ins and outs of a Chapter 7 bankruptcy

On Behalf of | Jun 5, 2020 | Chapter 7 Bankruptcy |

Many factors can lead a person to need to file for bankruptcy. When you don’t make enough to pay for the debts you have, this is one option that can help you get control of your finances. One of the first things you’ll have to do is to determine what form of bankruptcy protection you qualify for. We can work with you to determine this.

Some individuals will qualify for a Chapter 7 bankruptcy. This type doesn’t require you to make payments to the bankruptcy court to pay down your debts. Instead, any nonexempt assets you own will be seized and liquidated to pay off as much of the debts as possible. Any remaining balances will be discharged when the case is done.

There are some considerations that you have to think about if you’re going to use this type of bankruptcy. First, you won’t have to deal with creditors because the court will issue an automatic stay, which prevents creditors from trying to collect money from you for the debts.

You also need to think about the impact the filing will have on your credit report. You’ll have to work hard to rebuild your credit. You can’t do this while your case is open because you can’t take on any new credit without the court’s approval.

We know that this is a big step for you. We’re here to ensure you know what responsibilities and rights you have throughout the case. We’ll help you to get on your way to a fresh financial start by getting your case moving forward.