6 Considerations Before Filing For Chapter 7 Bankruptcy

information to know before filing for chapter 7 bankruptcy

Do you find yourself struggling every month to pay your bills? Are you frustrated to see your debts pile up? Do you think there's nothing you can do about it? Millions of Americans are asking themselves the same questions today, as their finances have also been severely impacted by the difficulties caused by the pandemic. Many have lost their jobs, and others have had to close their businesses due to quarantine. In the face of such terrible financial chaos, it's no wonder you think you're running out of options for dealing with your debts. However, there is one legal avenue that can help you get a fresh financial start: bankruptcy. 

Filing For Chapter 13 Or Chapter 7 Bankruptcy

Now, there are two types of personal bankruptcy: Chapter 13 bankruptcy, also known as wage-earners' bankruptcy, and Chapter 7 bankruptcy, known as "straight bankruptcy". If you feel that Chapter 7 bankruptcy is the best fit for your case, you should work with a Los Angeles Chapter 7 bankruptcy lawyer to ensure that the process is a success, and KT Bankruptcy Lawyer may be an excellent option. 

KT Bankruptcy Lawyer is a law firm comprised of excellent legal professionals willing to do whatever it takes to help you get the fresh financial start you so desperately need. If you want to know more about their services, visit their website, or contact them for a free consultation. 

If you are thinking about filing for Chapter 7 bankruptcy, here are 6 things you should know before you do. 

It’s the fastest solution Chapter 7 bankruptcy can be the fastest solution to your debt problems. A Chapter 7 bankruptcy filing usually takes about 4-6 months. 

In contrast, a Chapter 13 bankruptcy filing may take 3-5 years depending on the accumulated debt. So, if you need to get out of debt quickly, Chapter 7 bankruptcy is your ideal choice. 

Bankruptcy Will Stop Creditors In Their Tracks 

One of the great benefits of bankruptcy is what is known as "automatic stay". This means that once you file for bankruptcy, your creditors will be forced to stop all their debt collection efforts. This includes lawsuits, calls or visits to collect, and even the repossession and foreclosure processes. Bankruptcy helps you to avoid pitfalls along the way. Knowing how to navigate through a bankruptcy can make the process much easier. It can also help you avoid pitfalls along the way.

However, keep in mind that if the debt is secured (or unsecured with priority) the "automatic stay" will only be a temporary solution. 

Not Everyone Can Qualify For Bankruptcy

Chapter 7 bankruptcy is an attractive solution, but it's not available for everyone. To qualify, you will have to file a means test to allow the court to evaluate your financial situation. If your disposable income is too high, you probably won't qualify and you will have to opt for Chapter 13 instead. 

On the other hand, if your monthly income is below the state average, you will probably be automatically eligible for Chapter 7. 

Most debts will be wiped out, but not all of them Chapter bankruptcy will eliminate most of your unsecured debt, but some will stay with you after the process, secured debt, and unsecured debt with priority. 

Some debts that can be eliminated through bankruptcy are: 

· Credit card debt 
· Medical bills 
· Personal loans 

Alternatively, some debts that cannot be wiped through bankruptcy are as follows: 

· Child support 
· Alimony 
· Student loans 
· Some tax debt 
· Homeowners association fees 
· Court fees and penalties 

You Won’t Lose All Your Property 

Some people believe they will lose all their possessions by filing for bankruptcy, but this is not true. When filing for Chapter 7 bankruptcy you will be able to exempt many of your most important assets from the process, such as your house, your car, your clothes, and even your furniture. 

The exemptions will most likely cover all of your assets, so you could get rid of your debts without losing anything at all through bankruptcy. 

It Is Not As Easy As It Seems 

Bankruptcy can be an extremely complicated process for those who are unfamiliar with it. That is why it is best to work with a Los Angeles Chapter 7 bankruptcy attorney to help you every step of the way. 

If you want to work with passionate and experienced attorneys who are always available to you, KT Bankruptcy Lawyer is an excellent option. If you have more questions about the bankruptcy process, call now for a free consultation. 

You Can Learn Much More About The Law In Legal Facts! 

If you are dealing with a bankruptcy process, or any other legal issue, and want to learn more about it, you should visit Legal Facts! Here you will find multiple easy-to-read legal articles written by experienced lawyers and bankruptcy legal experts that will teach you about the law in a matter of minutes. Plus, you can also contact a lawyer near you through their vast network of attorneys. 

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