Understanding Chapter 7 Bankruptcy

When it comes to Chapter 7 bankruptcy, clients know that it is critical that they do their research so that they know what to expect from the process and can make an informed and confident decision as to whether bankruptcy really is the appropriate choice for handling their finances.

There are a few key points that anyone thinking about filing for bankruptcy should understand at the very beginning of the process. These are:

  • Chapter 7 bankruptcy is a process by which all unsecured debt is eliminated (discharged) and is no longer held against the debtor
  • There is no repayment plan involved in Chapter 7 bankruptcy as there is with Chapter 13 because the debts are eliminated
  • Filing for Chapter 7 bankruptcy can stop garnishments that have been placed against your wages and end harassing contact from and lawsuits by creditors.

There are many misconceptions about Chapter 7 bankruptcy that can unfortunately dissuade people who could really benefit from the process from filing in the first place. It is important that you understand each of these misconceptions so that you can make the right decision for your situation.

  • Bankruptcy cases are not published in the newspaper or advertised in any other way. Wynn at Law, LLC handles all cases with discretion.
  • You are not going to end up spending more on your bankruptcy case than you would have repaying your debt or acquiring late fees and charges.
  • Most people that file for bankruptcy do not lose their car or home.

No matter how much research you do into bankruptcy it is important that you contact an attorney and discuss the entire process. A good attorney will guide you along the process and ensure that you are handling all of your responsibilities associated with the case properly. It is important to find an attorney that you feel comfortable working with and who is responsive to your needs, as filing for bankruptcy is an important decision to make in one’s life.

 
Photo by Flickr Creative Commons Justin Henry

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