Is a Chapter 7 bankruptcy right for you?

Is a Chapter 7 bankruptcy right for you?

| Sep 16, 2020 | Uncategorized |

Debt can have a severe impact on your mental health. A good night’s sleep may have become a thing of the past, as your mind spins, wondering how you will escape from the situation you are in. You may be afraid to pick up the phone or answer the door in case of debt collectors. People have even committed suicide because they were unable to cope with the constant worry.

Filing for a Chapter 7 bankruptcy is a chance to escape the oppressive financial stress of debt. It is a chance to draw a line under the past and begin again with a clear conscience.

If you choose to use Chapter 7, many of your debts will be erased. From now on, you will be able to use the money you earn to build a sustainable future. Some of your assets you have may be sold to pay your creditors. However, you can usually retain your home and retirement plan. Without these, you would once again be in a vulnerable situation.

Certain debts cannot be cleared by Chapter 7, including:

  • Student loans
  • Child support
  • Alimony
  • Court fees

Not everyone is eligible for Chapter 7. If the following apply, you will need to seek an alternative option:

  • You fail the means test
  • You have filed Chapter 7 in the last eight years
  • You have filed Chapter 13 in the previous six years

Consult an Inverness attorney to understand more about Chapter 7 bankruptcy. If you do go ahead, your case could be finished within half a year, leaving you to get on with your new life.