If you are tired of struggling with debt you can no longer pay, and creditors calling each and every day making life miserable, then please continue reading:
Many people today are struggling with debt they can no longer pay. As a result they are bombarded with phone calls from multiple creditors making life miserableand there are many factors that contribute to a person’s inability to keep current with debt obligations: death, which often times leave astronomical medical debt; divorce; and/or loss of job, to name a few. So if any of these apply to you, the questions is, would you breathe a little easier and sleep a little better at night if you could find a way to get out from under the stress of trying to meet those financial obligations? If your answer is yes, you may be able to get that “fresh start” by filing for chapter 7 bankruptcy
WHAT IS CHAPTER 7 BANKRUPTCY?
There are several types of bankruptcy. Chapter 7 Bankruptcy is the type of bankruptcy that most comes to mind when someone thinks about bankruptcy. It is the bankruptcy proceeding that basically eliminates all (or close to all) of a person’s debt.
WHAT HAPPENS TO A PERSON’S DEBT UNDER CHAPTER 7 BANKRUPTCY?
When a person files for relief under Chapter 7 of the Bankruptcy Code, most, if not all of a person's debt gets eliminated (the legal term is "discharged").
IS A PERSON WHO FILES BANKRUPTCY ALLOWED TO KEEP HIS OR HER PROPERTY?
In most cases, most, if not all of a person's personal property can be protected under the property exemptions.
ARE THERE ANY RESTRICTIONS FOR FILING CHAPTER 7 BANKRUPTCY?
There are no debt restrictions when filing Chapter 7 Bankruptcy; however, there are income restrictions since the Bankruptcy Law was changed in 2005. But even considering these restrictions, many people still qualify for relief under Chapter 7 of the Bankruptcy Code.
1. CAN I KEEP MY HOUSE IF I FILE BANKRUPTCY?
Yes, if you are current on your payments.
2. CAN I KEEP MY CAR?
Yes, if your lender is willing to sign a Reaffirmation Agreement with you. (This agreement "reaffirms" your loan, and allows the debt to continue just as if you didn't file bankruptcy.)
3. HOW LONG MUST SOMEONE WAIT TO FILE IF THEY HAVE FILED BEFORE?
Eight (8) years for Chapter 7.
4. IF I'M MARRIED, DOES MY SPOUSE HAVE FILE TOO?
No, a married person can file alone. However, in community property states like California, your spouse could be responsible for the debt.
5. HOW LONG DOES A BANKRUPTCY STAY ON MY RECORD.
10 years. But after approximately two years you can begin to re-establish your credit.
6. DO I HAVE TO FILE AGAINST ALL OF MY CREDITORS?
7. CAN YOU STOP A FORECLOSURE WITH CHAPTER 7?
Yes, but only temporarily.
8. CAN ALL OF MY DEBTS BE ELIMINATED?
No, but most of them. Child support, back taxes, and student loans, among others, generally cannot be discharged.
9. WHAT IS THE DIFFERENCE BETWEEN CHAPTER 7 BANKRUPTCY AND CHAPTER 13?
Chapter 7 basically eliminates all of your debt. Chapter 13 bankruptcy is a repayment plan.
10. HOW DO "DEBT RELIEF" COMPANIES THAT ADVERTISE ON TV COMPARE TO BANKRUPTCY?
These are companies that advertise getting your debt reduced and paid in full in a short amount of time, usually three years. But this only gets your debt reduced, not eliminated. And the "forgiven" portion of your debt (the amount these agencies get "reduced") must be claimed as income on the debtor's part. This may not affect everyone, but if the amount of debt lowered is substantial, it could affect the debtor's tax bracket and actually increase his or her income tax liability. And sometimes the amount these companies ask you to pay each month may actually go up if they are unable to negotiate favorably with one or more credit card companies. So although the over-all concept of handling debt this way sounds good, it usually doesn’t prove to be the most advantageous way of coping with debt.
One thing to know if you decide to pursue that “fresh start” Chapter 7 bankruptcy offers, at the Law Office of Rosetta N. Reed, you never meet with a paralegal in conjunction with your bankruptcy case. The attorney conducts the initial interview, reviews your information, drafts your petition, is always available to answer questions, oversees the signing of your documents, files your petition with the federal bankruptcy court, and attends the Creditor's Meeting with you.