What A Bankruptcy Attorney With Chapter 7 Knowledge Can Do For You

If you are in more debt than you can pay, you should consult with a bankruptcy attorney. Chapter 7 information could be very valuable depending on your situation. For many people the start of a new year is offers the opportunity for a fresh start in many areas of their lives, including a fresh start financially. For those who are overwhelmed with the burden of debt coupled with a significant loss of income the fresh start may not come with the flipping of the calendar year as much as it will come with the filing of a chapter seven bankruptcy.

Some debt can not be discharged and some of your assets may be seized and sold to pay off some of your qualifying debts. It’s a good idea to fully understand how the complex the rules and laws apply towards you and your needs before you decide to fill.

Your attorney can explain what debts can and can not be discharged in the ever-changing rules. For example your debt to the IRS, student loans and your child support and alimony obligations can not be discharged. These are debts that you are obligated to repay with no possibility of discharge, regardless of your debt burden. On the other hand credit card debt, one of the biggest causes of debt burden, can be discharged as long as you stop using your credit cards sixty days before you file bankruptcy.

If you own your own home and want to keep it after your filing its important to have your attorney explain the current rules regarding how much equity is exempt from filing. If you are married and filing jointly this amount is doubled. If you go over the equity amount you may be forced to sell your home to cover the debts, even if the house is sold at a loss. If this is the case you will want to have a bankruptcy attorney with chapter 7 experience guide you in the process to make sure this is truly the best option available to you.

Anther point for your consideration is the length of time your claim will stay on your credit report. Even though you can not file again for six years, the mark can stay on your credit for ten years. This can actually be seen as a positive by some future creditors who recognize that you won’t be able to discharge any new debt you incur and are more than willing to give you credit, typically with a higher interest rate for repayment. On the other hand, your credit hit can affect your ability to buy or rent a home in the future or make any major purchase such as a car.

Your lawyer will likely go over all of the potential ramifications as well as advantages to filing this claim and ensure that it is the best option for your particular circumstances before you proceed any further. After you speak with your bankruptcy attorney, Chapter 7 may seem like your best option.