What Chapter 7 Bankruptcy Could Mean For You

Bankruptcy has a reputation as something that completely wipes out your debt and allows you to start over. It can do a lot for you, but it does not promise benefits to everyone and it does not do so with as little cost as people tend to presume. While it can be an amazing chance to start over, it is a good idea to go to a Wichita Chapter 7 bankruptcy lawyer with a basic idea of what your expectations should be if you are hoping to seek to file.
First, you will not be eligible if you have already filed it recently, which means within the last six to eight years. You should also keep in mind that your assets and income will be checked against your liabilities to determine whether you could conceivably manage to meet the requirements of a repayment plan. If you could, then you may be required to go for Chapter 13 bankruptcy instead.

If you do end up filing the paperwork, you need to understand that the process takes time. You will immediately get legal protections from your creditors, as they are not permitted to continue to pursue you to make payments while the court is attempting to sort the situation out. In fact, your ability to make financial decisions for yourself will end up being limited during the process, because a trustee is responsible for making sure that you and your creditors are treated fairly.

You also need to understand that you will probably lose some of your property during the process. You are permitted to keep things like some equity in your home, clothing, and unspent Social Security funds. Some property will also be worthless enough in terms of resale value that the trustee will decide there is no point to attempting to sell it, and you will be allowed to keep that. If you have valuable things that are worth selling, though, you may be required to turn them over to help meet your debts.

While bankruptcy is not without its costs, it is a remarkable opportunity to free yourself of the burden of excessive debt so that you can move forward in life.



Sharing is caring!