A Chapter 7 Bankruptcy filing is a useful way to discharge of most debt, and can relieve the burden of creditor collection attempts. Chapter 7 Bankruptcy is generally available when the debtor has little property aside from the basic necessities like furniture and clothing; and the debtor has difficulty making payments on basic expenses, or has very little money left after doing so. Today, many people utilize bankruptcy as a strategy for resolving unmanageable debt. Today, filing for Bankruptcy is more common than most people realize and can be a refreshing solution to a debt-ridden life.
Chapter 7 Bankruptcy is a liquidation proceeding whereby the debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash to pay off the creditors. Usually within four months the debtor then receives a discharge of all dischargeable debts. Usually, these dischargeable debts include your credit card debt, old medical bills, utilities bills, unsecured loans, pay day loans, and most other types of unsecured debt.
The advantage to filing Chapter 7 Bankruptcy is that your unsecured debt is completely eliminated, the process is fairly quick, and the automatic stay that takes place after filing prohibits creditors from making collection efforts.
It is important to be aware that while Chapter 7 Bankruptcy may ultimately relieve a debtor of the burden of insurmountable unsecured debt, it is a process that requires the production of several documents and tedious preparation. The more prepared the debtor is, the more seamless the process becomes.
Bankruptcy is a complex area of law and involves many considerations, including whether to file, determining which type of Bankruptcy to file, the use of exemptions, understanding the protections of the Bankruptcy Code and using them to your advantage.
No matter what your situation is, obtaining quality legal consultation from an experienced bankruptcy attorney is beneficial. Contact Blick Law Firm today at (813) 931-0840. Schedule a free 15 minute consultation with attorney Michael Blickensderfer to assess what option is best for you. Think quick, call Blick!