Will Filing For Chapter 7 Bankruptcy Save My Life?

The answer depends on what is the situation in your life right now. You may be struggling with credit cards, medical bills, personal loans or any other type of debt. Sometimes you have creditors calling you on the phone, harassing you at work or just sending you letters making your life miserable. At other times, the creditor can actually be taking money out of your pocket in a way of garnishment, bank seizure, or straight payment plan. If the amount being taken out of your pay depletes your resources to the point where you cannot support yourself or your family, then bankruptcy is probably your best option. If you are someone who is struggling financially and need a fresh start, a chapter 7 is going to be your salvation. Chapter 7 bankruptcy allows you to keep whatever property you have provided is not above the certain state exemption amounts allowed in your state and eliminate all of your unsecured debt that can be eliminated. There are some exceptions to discharge which are student loans, recent taxes, parking tickets, child support, maintenance payments, and other debts incurred by fraud. However, the majority of debts unsecured can be eliminated under chapter 7 bankruptcy law. If on the other hand, you have just a few debts or if your amount of debt is not excessive, then chapter 7 filing bankruptcy is not going to be a good idea for you. If your debt is low, it is better to pay off the debt with a payment plan or some type of arrangement with the creditor as opposed to filing for Chapter 7 bankruptcy relief. This is because filing bankruptcy will put a mark against your credit for the next 10 years. This does not mean that you will not receive credit for 10 years. However, the fact that you filed a bankruptcy will be indicated on your credit bureau for the next 10 years. You can reestablish credit within six months to two years after a bankruptcy filing. However, if you really don’t need to file, then you should not file. If, on the other hand, you are really struggling, the amount of your debt is excessive, and you just feel in no way that you can bail yourself out, then consider filing a chapter 7 bankruptcy through an experienced bankruptcy attorney in your local area. The attorney will sit down with you, usually at no cost and let you know whether or not chapter 7 is a good option or whether it is better to not file at all. If the attorney determines that it is a good option, then he or she will lay out all the details including the filing fee, the attorney fee and what is exactly needed from you to be able to file. There is no reason to struggle financially for year after year, month after month, week after week if you don’t have to. Examine your total financial situation to determine whether or not you need a fresh start on whether or not you feel you can bail yourself out and get out of debt within a reasonable amount of time without having to file for bankruptcy.