Should You File For Chapter 7 Bankruptcy If You Qualify?
Posted on: 5 December 2017
If you meet with a bankruptcy lawyer and discover that you qualify for Chapter 7 bankruptcy, you might wonder if you should go ahead and file. Before you do, it's important to understand that bankruptcy is not right for everyone, and Chapter 7 bankruptcy is not always the best option even for people who qualify for this branch.
Ways Chapter 7 can help you
Using Chapter 7 is the better option for many situations, but it is not the best option for all situations. This branch of bankruptcy can be extremely helpful for you if you owe a lot of money on credit card bills and nothing else. It can also help people who owe a lot of money on medical bills. If you qualify for Chapter 7 and use this branch, it will eliminate medical bills and credit card debts, without requiring you to repay them.
Limitations of Chapter 7
While Chapter 7 is good for people with certain debts, it is not the best option to choose if you owe money on back taxes, child support, or other types of non-qualifying debts. Because of this, a lawyer will want to see exactly what money you owe and who you owe the money to before recommending either branch of bankruptcy.
In addition, Chapter 7 has other limits, including that it cannot stop a foreclosure from taking place. If you are currently facing the potential for a foreclosure, you should take a closer look at Chapter 13 bankruptcy instead. Chapter 13 will be the more advantageous route for you if you are facing a foreclosure.
What bankruptcy cannot do
Both branches of bankruptcy offer pros and cons, and both have limits. No matter which branch you choose, though, there are certain things bankruptcy simply cannot do. The first thing it cannot do is help you protect your credit. If you file for either branch, it will have negative effects on your credit. Secondly, filing for bankruptcy will not just automatically eliminate every debt you have. It will only help with certain types of debts, and this is why you should carefully evaluate all your options before filing.
There are a lot of things to think about and evaluate before you file for either branch of bankruptcy. Because of this, you should discuss your case with a bankruptcy lawyer before you make any decisions. To talk to a lawyer, schedule an appointment with a bankruptcy law firm in your city.
Share