Need Financial Relief? Things To Know About Filing For Chapter 7 Bankruptcy

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Dealing with debt can be overwhelming. However, you can take heart because there are legitimate options to lower your deficit and ease your mind. One of the top methods for doing so is by filing for a Chapter 7 bankruptcy. This could be the key to preparing you for less worry and stress. However, there are several items you'll want to be aware of in the process.

Dischargeable debt

This bankruptcy type is typically referred to as liquidation bankruptcy.  The obligations that will be discharged are the unsecured type and personal loans.

Many of these payments  may include your credit card balances or a loan you may have taken out for a vehicle or other things, such as starting a business or making a home improvement.

Debts you'll have to pay

It's ideal to take a long look at not only the amount of debt you have but the type, as well. Doing this will allow you to have a better understanding of these will be released or not.

Below are some of the ordinary debts that won't be discharged:

1.    Student loans – Did you recently borrow money to get an education? If so, you can count on paying all of this debt back by yourself.

2.    Tax payments – Despite what you may have heard, you'll need to make any payments to the Internal Revenue Service that are owed. 

3.    Child or alimony support – Has the court ordered you to pay money to support your child or ex-spouse? This is typically an amount that will need to pay monthly, and you must pay it.

Time-frame for bankruptcy

Of course, the first thing on your mind may be when you can qualify for this legal status and get your debts paid. However, it's necessary to complete the required paperwork beforehand, and this can get complex.

It's actually in your best interest to work with an attorney that specializes in this area to assist you. Once all the formalities have been completed, you can typically expect to wait three to four months until this process is complete.

Take control of your financial situation and get the assistance you need for financial stress. You have the power to do so and being proactive is by far the ideal way to minimize a lot of your worry. Get started on this process today to help you enjoy long-term success tomorrow!

Reach out to a professional like C. Taylor Crockett, P.C. to learn more.