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Chapter 7 the Positives and Negatives of Bankruptcy

The dog's barking, your toddler is crying because she's hungry, and your phone won't stop ringing. Yet another creditor is calling demanding payment. There's just not enough money to go around. You're working, but getting paid half what you used to make. It's better than nothing. You can't focus on what's a good next step with all these pressures. You've thought about bankruptcy, but you don't have a clue what it means; what it costs; if it's right for you. Perhaps sitting down with a Chapter 7 bankruptcy attorney will help alleviate the stress of not knowing what to do next.

The thing to remember is that you do not deal with bankruptcy issues for a living, day-in and day-out every day for your career. A Chapter 7 bankruptcy attorney does. They are paid to be the experts and to provide sound advice that is specific to your situation, and to help you navigate through to a better, more secure and stress-free future. But filing for bankruptcy isn't free, and there are long-term consequences that may significantly impact your life for years to come. It isn't for everybody, and without proper guidance it is possible to mess things up and make matters worse, so hiring a Chapter 7 bankruptcy attorney is definitely a wise decision. Yes, it will cost money, but in the long run it may save you thousands of dollars you would have otherwise ended up paying your creditors who make your life miserable when you get behind on your payments.

Not all debts are wiped out in a bankruptcy, and there are some strict guidelines to determine whether you even qualify to file for Chapter 7 bankruptcy. Sometimes the courts decide that you must file Chapter 13 bankruptcy, which is more like a debt restructuring and repayment program instead of debt elimination or liquidation as happens with a Chapter 7 bankruptcy. Some debts that may survive a Chapter 7 bankruptcy include your mortgage, car loans, student loans, back taxes and back child support payments.

Once bankruptcy is declared, it basically wipes out your credit history and makes it virtually impossible to get new credit for a number of years. A Chapter 7 Bankruptcy attorney can help make an action plan for what steps to take first. For example, if you have an Adjustable Rate Mortgage (ARM) that resets every year or has a balloon payment due in the next 5-10 years, it may be recommended that you seek a fixed-rate mortgage before going through your Chapter 7 bankruptcy filing. This will assure that you are not stuck in a mortgage that gets out of control with its monthly payments at a time when you are unable to secure a new loan due to your bankruptcy being on your record for the next 10 years.

If you are overwhelmed with debt that you cannot afford to pay back, go to as your next step.