You may have heard that filing bankruptcy will solve all your financial problems. While this is not strictly true in all cases, there are signs you should look out for that may suggest bankruptcy is the right option for you. For instance, Chapter 7 bankruptcy can result in the discharge of unsecured debts.
Recognizing these five signs that a Chapter 7 bankruptcy is right for you may lead to the financial freedom you need to get back on your feet.
You Need a Fresh Start
If you need a fresh start financially, filing for a Chapter 7 bankruptcy can give you the opportunity to have crippling unsecured debts, resulting from things like credit card or medical expenses, discharged. Liquidating debt is one of the most beneficial aspects of a Chapter 7 bankruptcy. If you earn less than the median income in the state for a family of your size and can pass a means test, you may qualify for Chapter 7 bankruptcy, although other factors must be considered as well.
You Have a Lot of Debt
Under Chapter 13 bankruptcy laws there are debt limits. However, the average person usually has far less debt than the debt limits. If you have a lot of debt, Chapter 7 may be a better option for you. It is important to have your finances assessed by an experienced bankruptcy lawyer. H. Lehman Franklin P.C. can provide impartial advice and guidance if you live in Georgia. This could be your opportunity to free yourself from the stress and anxiety that comes from paying ever-increasing bills each month.
You Wish to Have Debt Discharged Quickly
When you file for Chapter 7 bankruptcy the process is typically completed within four to six months, after which time your debts are discharged. A trustee will distribute the proceeds from your property to unsecured creditors and the bankruptcy court will then close the case. There are Chapter 7 cases that may take longer, however. This will depend on the specific circumstances of the case. Many cases do not have assets to be liquidated by a trustee. An experienced attorney can determine whether or not you have assets that may be subject to liquidation.
You Do Not Want a Repayment Plan
If the thought of a repayment plan is not something that would work in your financial circumstances, a Chapter 7 bankruptcy may provide a more suitable solution to your debt. Chapter 13 bankruptcies involve a court agreed repayment plan which will last between 3-5 years. Renegotiation of loan terms and consolidation loans can also involve repayment plans that result in it taking longer for you to get out of debt.
You Want to Keep Future Income and Assets
If you believe keeping future income will help you achieve better control over your finances, Chapter 7 bankruptcy is worth considering. There are rules surrounding certain properties acquired within 180 days after filing for Chapter 7 bankruptcy but, typically you can keep any future income and assets acquired after filing for Chapter 7. If you have concerns about future income which may be subject to a Chapter 7 estate, speak to an experienced bankruptcy lawyer for advice.
H. Lehman Franklin P.C. provides excellence in guidance on Chapter 7 bankruptcy in Georgia. Call our offices today on 912-764-9616 or via email at firstname.lastname@example.org if you have further questions about the benefits of filing for bankruptcy.