When harassing creditors seem to overwhelm your daily routine, and you find yourself struggling to make ends meet, it may be time to consider filing for bankruptcy. Chapter 7 Bankruptcy is a petition that asks the court to erase your debts and give you a fresh start. It is a straightforward process that wipes the slate clean.
While it may seem easy, there are many things to consider when making this drastic step toward financial freedom. Ask anyNorthern Kentucky bankruptcy lawyer, and you will find there are both pros and cons to the process.
Pros of Filing Chapter 7 Bankruptcy
1. All debts are wiped clean in bankruptcy and you receive a fresh start. The only bills that are not dis-chargeable are student loans, taxes, and past due child support. Bills created within the previous 90 days before filing may also be considered to be ineligible for filing.
2. Typically, after a person files for bankruptcy they are able to get credit cards and auto loans. Most credit account offers require new cardholders to pay a security deposit to open an account.
3. The process is often complete in 2 to 4 months. You will be required to attend a meeting of creditors, and answer a series of questions concerning your debt.
4. It’s fairly inexpensive to file a Chapter 7 Bankruptcy. Some say it is a small price to pay for peace of mind.
5. A bankruptcy will automatically stop collection activities, judgments, and repossessions. It allows the debtor a chance to negotiate new terms, or to have their debt released.
6. Filing a petition immediately stops creditors from calling and harassing you by mail. All creditors will now be required to communicate through your bankruptcy attorney and or the trustee over your case at the courts.
Cons of Filing Chapter 7 Bankruptcy
1. A bankruptcy stays on your credit report for up to 10 years. While this is a negative aspect of Chapter 7, you can begin rebuilding your credit immediately.
2. You can only file bankruptcy once every eight years. If you have additional financial problems down the line, filing a Chapter 13 repayment plan may be an option.
3. You are only allowed a certain number of exceptions. If you exceed that amount, you will be required to give the court the excess.
4. The legal process can be daunting and some find it embarrassing. You will have to appear in court at least once, and perhaps more if any creditors dispute your discharge.
5. Secured debts are dis-chargeable. Also, the property will need to be returned to the creditor and or a settlement price negotiated.
Making The Final Decision To File
Carefully consider the pros and cons of filing a Chapter 7 Bankruptcy. Having an attorney like W. Ron Adams to help you through the process can be very beneficial. When it comes to the meeting of creditors and the plethora of paperwork, you are in good hands and can rest assured that you have experienced and dedicated representation.
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