Has years of falling behind on paying debts left you in a financial bind that is difficult to recover from? It might be wise to hire a lawyer to assist with filing for Chapter 7 bankruptcy if you are qualified. The lawyer will perform a means test to see if you meet the median income limit for your area as well as assess all of the debts that are owed to determine if filing for bankruptcy is ideal. If you are qualified, the lawyer will help you file for bankruptcy by preparing the document and filing them with the court. Take a look at this article to learn about the benefits of filing for Chapter 7 bankruptcy.
1. Your Debts Will Be Forgiven
The best thing about filing for Chapter 7 bankruptcy is that you will no longer have the stress of worrying how you will pay off your debts. All or most of your debts will be forgiven if a judge approves your bankruptcy case. It is possible that debts owed to the government like student loans will not be forgiven, but they will be easier to pay off with the other debts out of the way. You must also keep in mind that there is the possibility that a portion of your assets will be seized and sold to pay off your debts. However, a bankruptcy lawyer can help you keep all or most of your possessions by arguing your case to the judge.
2. You Can Rebuild Your Credit
Before moving forward with the Chapter 7 bankruptcy process, a lawyer will make sure that it is the best way to settle your debts based on your situation. Sometimes lawyers suggest bill consolidation over filing for bankruptcy, as it can prevent your credit from being damaged. However, you will be able to rebuild you credit after Chapter 7 bankruptcy is approved. The only problem that you might come across is having a hard time getting approved for a home loan during the period that Chapter 7 bankruptcy is on your credit report. Chapter 7 bankruptcy can remain on your credit report for 10 years.
3. No More Calls from Creditors
Filing for Chapter 7 bankruptcy will give you more peace because you won't have to deal with creditors demanding a payment any longer. The creditors can be sued for harassment if they continue to call after your debts have been legally forgiven. Consult with a lawyer about filing for Chapter 7 bankruptcy as soon as you can.
For a bankruptcy attorney, contact a law firm such as Hamby & Hamby, P.A.