The crushing weight of debt can hold you down. If you are in this position, you might decide that you need to file for Chapter 7 bankruptcy. This possibility should be carefully considered so you can ensure that it is the right option for your needs. There are actually several things that might mean that a Chapter 7 filing isn't the right option for you.
While there isn't an official chapter of bankruptcy that addresses only medical bills, people who are overwhelmed by these expenses might consider filing a personal bankruptcy. A Chapter 13 or Chapter 7 filing can provide you with the financial relief that you need.
Filing a Chapter 7 bankruptcy is a big decision that can impact you for years in the future. You have to think about the entire situation before you make your decision. This is often a necessary step that is brought on by things you can't control. It is hard for some people to accept, but it can be the fresh start that truly helps you to turn your life around.
Many people get into debt and then realize they are in over their head. When bankruptcy comes up, there is often a discussion about which chapter is that best one for the situation. For people who are considering filing a Chapter 7 or liquidation bankruptcy, there are some clues that might point to this being a less than desirable option for you to take.
When you are so deep in debt that there doesn't seem like a way out, you might feel hopeless. The good news here is that you do have options to consider. One of these is filing for bankruptcy. People who meet certain income and asset limits might be able to file for a Chapter 7 bankruptcy. This could provide the fresh financial start that helps them to regain control of their situation.
A Chapter 7 bankruptcy isn't throwing in the towel and giving up on the debts that you owe. Instead, this is a time when you are acknowledging that you are in over your head. The bankruptcy lets your creditors know that you can't make the payments and takes the false sense of hope away and presents them with a factual situation.
One of the points that people who file for bankruptcy are concerned with is how they are going to rebuild their credit when the case is over. The answer to this isn't very easy, but it is possible to rebuild your credit score over time if you are willing to work at it.
Financial problems can put a huge burden on a marriage or a family. Believe it or not, there are few people that have not experienced them at some point in their lives. It is easy to believe that only people with little or no income experience financial problems, but the truth is people with a lot of money experience them just as much. The more money a person has, the more money that can be mismanaged.
If you are reading this, you probably already know that debt can consume your life even as you struggle to pay down all of your bills. It is like taking a step forward only to be knocked back a few steps. If an emergency arises such as a serious illness or the sudden loss of income, any balance you may have reached will soon disappear, leaving you in even worse financial trouble.
Here is a scenario we have seen with our clients. You have been struggling with your debt for a long time. After trying desperately to sort out the situation and get back on track, you finally realize chapter 7 bankruptcy is your solution. You assume that because you are so far in debt, working with a lawyer is out of your reach. However, you have trouble with your bankruptcy and don't know where to turn for help, leaving you even more in debt and at loose ends altogether.