Considering Chapter 7 bankruptcy in Charleston?
Dealing with accumulated debts is not always easy. If there is no solution on the horizon, you may have to consider bankruptcy as a last resort. Most individuals have two choices – Chapter 7 and Chapter 13. More than 50% of all bankruptcy cases are Chapter 7 filings, but that doesn’t mean everyone qualifies for it. Talk to a bankruptcy attorney Charleston, WV, to know if this is the option for you. For your help, we have a few pointers below related to Chapter 7.
- You can discharge most debts, but not all. It is a common misconception that one can get rid of all debts through Chapter 7, which is not entirely true. Yes, you can possibly discharge all your unsecured debt, but you would still need to pay for certain things – child support, alimony, and student loans, as applicable.
- Chapter 7 bankruptcy can be completed within months. While bankruptcy paperwork is time-consuming, it can be completed within three to four months. You should be able to rework your financial situation immediately after. Ask your attorney about the realistic outcomes of your bankruptcy filing to make a sensible decision.
- Filing for Chapter 7 bankruptcy will automatically stop your creditors. Once you are done with the filing, your creditors cannot harass you further for repayments. You could have the window to negotiate new deals, and an attorney can help with that.
- Bankruptcy will appear on your credit report. If you file for Chapter 7 bankruptcy, it will remain on your credit report for as long as ten years. This can have other consequences too. For instance, if you want unsecured personal loans, you may have to pay a much higher interest rate.
- Some people may benefit from Chapter 13. If your net worth is high and you have a high monthly income, you could benefit from Chapter 13 rather than Chapter 7. Chapter 13 is more of a debt repayment plan for the next three to five years, and you could retain most of your assets.
If Chapter 7 is your only option, you could still retain your house and car. It depends on whether you have been paying your mortgage and auto loans on time and your ability to keep paying the installments as per schedule. Talk to an experienced attorney today to find more on bankruptcy, and don’t forget to discuss your key concerns depending on the financial situation. Bankruptcy is a decision that requires considerable contemplation.
