Understanding Chapter 7 Bankruptcy- Should I Go for It?
During the tough time, we all look for the best solution and financial difficulties such as debts are no exception. It is a good idea to assess various options before making the final decision. Chapter 7 Bankruptcy is one of these alternatives, which has helped a number of debtors including small business owners, individuals, corporations and LLCs. It is advised to get in touch with a Bankruptcy lawyer to understand what Chapter 7 Business Bankruptcy is. Since he is an expert, he can educate you on all the laws pertaining to this type of Bankruptcy.
What is Chapter 7 Bankruptcy?
In this type of bankruptcy, the debts are paid off against the properties or collateral attached to the debt, in the case of secured loans and other assets. The debtor needs to provide the list of all assets as well as loans so that a proper arrangement is done to repay the amount.
Unsecured payments may include child support, personal injury claims, tax debts, personal loans and credit cards. These debts are paid off first during this type of Bankruptcy.
Discharge of loans or debts
One of the major advantages of this type is that most of the loans are discharged. After this, the debtor holds no liability to pay the loan or debt. Even the lending companies lose their right to call them or follow up with them for repayment. If they do so, they will have to pay fines and penalties.
There are some loans, which cannot get discharged such as student loans and income taxes. Your Chapter 7 Bankruptcy lawyer will be able to educate you on these types of debts.
The negative impact of Chapter 7 Bankruptcy
While it is possible for a debtor to get relief from his debts, it will reflect on his credit history for several years. That’s why, he will not be able to avail of any loan because the report will be shared with all the financial institutes. Therefore, if you want to go for it, you need to be sure of it as the last resort.
Hiring an attorney to file the Bankruptcy
You may be able to file for it on your own but it is not at all recommended. The reason is that these laws and rules are complicated. You need to be well-versed in them. However, hiring a lawyer is your best bet because he knows these laws very well.
Don’t feel depressed about filing for it. Just take a fresh start!
