Are you currently trapped under mounds of debt? Often times people spend years struggling to pay off their debt. Instead of dealing with such stress you should consider bankruptcy. Bankruptcy is one of the best ways to handle way too much debt.
Chapter 7 Bankruptcy is arguably the most common form of bankruptcy pursued by everyday people. It’s often referred to as “liquidation” bankruptcy because the process will require a person to liquidate a significant amount of their property to cover their debt. Unfortunately, not everyone who files for Chapter 7 will be eligible to receive it.
Although bankruptcy help can be very effective for handling debt, neither your debt nor your creditors go away overnight. Generally, it takes between 16 and 24 weeks to complete the entire bankruptcy process. When it comes to administrative and filing fees you’ll pay a little over $300; if you’re hiring a lawyer to help you, you’ll spend a lot more.
When you file for Chapter 7 bankruptcy the court will order an automatic stay. An automatic stay will require all collection efforts by creditors to cease immediately. At this point it’s illegal for any collection agency to contact you.
One of the downsides of filing for Chapter 7 is the financial control that you lose. When you file for bankruptcy you’re technically giving the bankruptcy court control over your property. After filing for bankruptcy, you’re not allowed to donate or sell any of your property without the knowledge of the bankruptcy court. All property and debts paid will need the approval of the bankruptcy court before they’re finalized.
When it comes to your property, be prepared to part ways with some of it. All non-exempt property will need to be liquidated in order to pay your creditors. The bankruptcy court will decide what is and isn’t non-exempt. Luckily, rarely is a substantial amount of non-exempt property recovered for Chapter 7 bankruptcy. In most cases, the majority of a person’s property is exempt from liquidation.
Consider all of this information if you plan on filing for bankruptcy. Again, this is a very effective process but it takes time to complete. Only consider bankruptcy if you have a substantial amount of debt you know you can’t possibly pay back. You can visit their Facebook page for more information.
