Key Criteria to Know Regarding Chapter 7 Bankruptcy

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Deciding whether or not to file for Chapter 7 bankruptcy is a big decision to make. However, if you are finding that your debt leaves you with no other options, it might be time to strongly consider filing for bankruptcy with the help of a local attorney. Attorneys have seen just about every case of bankruptcy that you could imagine. It isn’t wise to wait, as your debt continues to grow out of control. In this post, you will be given an overview of what filing for this type of bankruptcy entails, what you should expect to pay, and the importance of having a local attorney on your side during this process.

Chapter 7 bankruptcy will absolve you of most debts but it will damage your credit for up to 10 years. However, this can be a tiny price to pay for those who are deep in debt. You won’t be able to use any existing credit cards and will not be allowed to open up new credit card accounts for up to three years. Most who are filing for this form of bankruptcy won’t mind doing away with credit cards for a few years, some even welcome it. A local attorney will be able to look at the amount of debt you have, helping you to decide if chapter 7 bankruptcy is the best decision to make. New figures show that the average American has over $16,000 in credit card debt, which leaves the total cost of filing for Chapter 7 bankruptcy about 82% less than carrying the average amount of debt.

Many people put off filing for bankruptcy because they assume that the costs are outrageously high. However, an average case of Chapter 7 bankruptcy costs range from $1,500 to $3,000 which is a small price to be free of most of your debt. In most situations, the costs associated with a chapter 7 bankruptcy case are far smaller than it would be to try and tackle a mountain of debt. There will be a filing fee that you must pay when undergoing bankruptcy but it is minuscule, when compared to most clients overall debts. For Chapter 7 bankruptcy, the case fee is, on average, $335, while those filing for Chapter 13 bankruptcy is around $310.

While Chapter 7 bankruptcy will absolve you of a large number of debts, there are certain forms of debt that this will not cover. Those suffering from the burden of student loans should not look to file for Chapter 7 bankruptcy, you will still be expected to pay these loans. Also, child support is not a payment that you can expect to be absolved by filing for Chapter 7 bankruptcy. It is highly advised that you seek a local attorney when making the decision to file, as they can inform of what is and isn’t fully covered. Lawyers for bankruptcy know the battle that you are undergoing. Lawyers will help you come out of Chapter 7 bankruptcy with your freedom. Having to constantly deal with a barrage of collection calls and a stack of bills piling up can all be resolved. The success rate for filing for Chapter 7 bankruptcy with an attorney is over 95%.

In summary, making the decision to file for chapter 7 bankruptcy is one that needs to be taken seriously. While it is true that filing for bankruptcy will damage your credit for up to 10 years, being buried in debt will have the same effect, likely for a much longer time. The burden of a damaged credit score can be somewhat removed when you consider that most of your debts will be absolved. You won’t be able to use a credit card for quite some time after filing for bankruptcy. Don’t wait to file for Chapter 7 due to fears that it will be costly. It is quite likely that the total costs to be debt free are much smaller than the total amount of debt you currently owe, making filing a wise long-term decision in most cases.

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