If you made poor financial choices that led to the accumulation of debts, there is a way to get the situation under control. Filing for Chapter 7 bankruptcy will give you the break you need to stop worrying about paying creditors back and focus on rebuilding your credit. The first thing you should do is hire a bankruptcy lawyer so he or she can help you through the filing process.
How Can a Lawyer Help with the Chapter 7 Bankruptcy Filing Process?
A lawyer will first have to make sure you are actually qualified for Chapter 7 bankruptcy, as it is something that will have to be approved by the court. Passing a means test is how qualification is determined. A means test is done by the lawyer calculating your income and living expenses. You must not make more than the medium income in your state to qualify. If your living expenses are high and you make more than the medium income, you may still be able to file.
Once it is decided that you qualify for Chapter 7 bankruptcy, a judge will be able to appoint a trustee over your debt situation. Some of your assets may be sold by the trustee as a way to settle a few of the debts. However, a lawyer can help you get out of having to sell any of your assets. Selling assets is not always necessary, and it is possible that your debts will simply be forgiven after filing for bankruptcy.
Hiring a lawyer will also be helpful in avoiding getting into the same financial situation again. You can receive advice about attending credit counseling sessions. The lawyer will likely refer you to a reputable credit counselor who can assist you with getting your spending habits under control.
Can Filing for Chapter 7 Bankruptcy Affect a Credit Report?
Chapter 7 bankruptcy can remain on your credit report for a period of up to ten years after approval. Keep in mind that having bankruptcy on your credit report can interfere with getting approved for house financing, such as if you desire to purchase a new home. You will also find it hard to getting approved for credit cards after filing for Chapter 7 bankruptcy.
Filing for Chapter 7 bankruptcy is a decision that you should not take lightly. Make sure you hire a lawyer (such as http://howardgoodmanlaw.com/index.html) to help determine if filing for bankruptcy is in the best interest of your financial situation!Share