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Is Filing Chapter 7 In Your Future?

Filing Chapter 7 is a way for people to get a new lease on their financial life. Although it does have serious implications, often it is something that must be done. Nevertheless, it is important to weigh your options. Is this something that you need to do? Is this something that you may be able to avoid? It can be very difficult to understand what the right road to take is. After all, you have made a promise to these creditors to pay them and now you are struggling to make ends meet.

When To File

For every person, whether or not you file Chapter 7 is up to you to determine. Although there are a number of different times when it is a very good idea, there are many that file that don’t need to do so. For this reason, new laws have been put in place to determine just if you qualify to file in the first place. Your attorney will walk you through understanding if Chapter 7 is right for you, if Chapter 13 is a better choice of if you don’t qualify for either.

Many times, there will be times when filing Chapter 7 is a good thing. For example, with the rising cost of medical care, it is very possible that if you have extraordinary medical bills that this may be a good time to file. If you can’t pay them off or you have been injured and don’t have a means to pay them off, it may be necessary for you to file.

For others, credit card debt or real estate debt can mount quickly. The rule for those that file Chapter 7 is that if you have assets that in most cases, they will need to be sold off to repay the debt that you owe. Each state has different allowances for what can be kept and what can not. Again, your attorney will work through this process with you.

The best course of action for many is to look at what they owe, factor in the interest that they would be paying on that amount and determine how long it could possible take them to repay their debt. Although you may not realize it, it may be far too costly in your financial future to not file Chapter 7.