What You Should Know About Filing For Chapter 7 Bankruptcy

Starting a business is always a risk, and sometimes it doesn't end well. Read on to find out if bankruptcy is the right move for you.

What You Should Know About Filing For Chapter 7 Bankruptcy

What You Should Know About Filing For Chapter 7 Bankruptcy

21 February 2018
, Blog

When you have been struggling with your finances for a while, you may find yourself thinking about filing for Chapter 7 bankruptcy. After all, if you cannot pay your debts and are falling further and further behind, you may not know what else to do. Before you make your final decision on your finances, get to know more about filing for Chapter 7 bankruptcy. Then, you can be absolutely certain that you are making the right decision for you and your financial needs. 

Not All Debts Can Be Discharged in Chapter 7 Bankruptcy

While all of your debts are important in your financial situation, not all of them can be addressed through bankruptcy. Student loans, alimony, child support, and the like are debts that are not affected by successfully filing Chapter 7 bankruptcy. 

You will still have to pay back these debts after your bankruptcy process is completed. As such, this is an important factor to consider when you are planning to file for bankruptcy, especially if these types of debt make up a large part of the problem. If that is the case, you may want to consider other options in addition to bankruptcy including credit counseling and debt consolidation. 

You Need a Lawyer to File for Bankruptcy

There are some court processes that you can approach alone. However, bankruptcy is not one of them. The bankruptcy filing process is complicated and takes a great deal of time an expertise. Hiring a bankruptcy lawyer will help you through this process and will help to ensure that you do not make any major mistakes in your bankruptcy filing or debt disclosures. 

They can also help you if your creditors try to challenge your bankruptcy filing as well as throughout the entire process. Do not try to go it alone when you are thinking about filing for bankruptcy. Even if the costs of a lawyer seem high, it is well worth the investment to avoid having your bankruptcy filing denied. 

Bankruptcy Can Take Time

Filing for bankruptcy is not an instant solution to your problem. It can take time to gather all of the necessary documentation and file your paperwork. Once your paperwork is filed, it can take a while for the courts to process your request. As such, you should try to talk to your creditors in the meantime, especially for those debts that cannot be discharged and try to make arrangements of some kind in the meantime. 

Knowing these facts about filing Chapter 7 bankruptcy, you can be sure that you make the best possible decision for you and your financial recovery needs. 

About Me
is bankruptcy a smart business move?

America is supposed to be the land of opportunity. What do you do when you try to take advantage of an opportunity that ends up costing you more than what it is bringing in? Sometimes, a business that you start just doesn't work out as you had hoped. It could be that you don't have enough experience or it could be that the market goes bad. Whatever the reason for the business not doing well, you will have to think carefully about your next step. Is bankruptcy the only way to get through this difficult time without losing everything you have worked for?