Understanding Chapter 7 Bankruptcy
Whatever causes people to have to file for Chapter 7 bankruptcy? Many times, bankruptcy is caused by job loss, divorce, illness, a death in the family or a bad economy. Lost or reduced cash flow creates the necessity for you to find other ways to fund living expenses, such as credit cards, payday loans or even writing bad checks. Desperation, fear and frustration occur when you are just trying to survive and pay impossible debt to avoid bankruptcy. As you can tell, the reasons for creditor problems are many, but the best solution to them is one — protection by the bankruptcy court.
Break from your financial chains with help from our experienced team. Chapter 7 is the most often used bankruptcy remedy is also the one that moves the fastest and is the least expensive to file. After the petition and schedules are filed with the court, we accompany you to your hearing, which is called “the meeting of creditors.”
It’s a common misconception that filing bankruptcy erases ALL debt. While it does provide relief from many of the bills that come in, it’s important to know that there are special kinds of debt that can’t be relieved. These include:
- Child support
- Income taxes less than 3 years old
- Property taxes
- Student Loans
- Fines and restitution imposed by courts for crimes by the debtor
- Spousal support may not be forgiven as well
How Long Does a Bankruptcy Follow Me?
One of the considerations for whether or not to file is creditworthiness, and length of time that a bankruptcy that it stays on your credit report. A chapter 7 bankruptcy stays on an individual’s credit report for 10 years from the date of filing the chapter 7 petition.
There should be no surprises at the hearing. John A. McLaughlin, Jr., P.C., makes sure that you are prepared for the hearing by advising you on what to expect and how to testify with confidence and truthfulness. After objections are resolved, your debt is discharged by a federal court. Your credit balances are no longer collectable forever. In addition, garnishments, lawsuits, and creditor harassment will end.
Let us be the source to help you through this difficult time and make a good decision.