Chapter 7 bankruptcy may be the solution for you if you’re having financial problems. When carried through correctly with the aid of an experienced bankruptcy lawyer, Chapter 7 bankruptcy may assist in ending the debt cycle and provide you a fresh start on the road to a better financial future. This is how it goes. If you have questions, or require help from a bankruptcy attorney, contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a consultation.
It helps you get rid of unsecured debt
When you file for Chapter 7 bankruptcy, you could entirely discharge all of your unsecured obligations with very few limitations. Any debt that is not secured by property that the creditor may seize in lieu of payment is considered unsecured.
Therefore, unsecured debt includes debts from credit cards, personal loans, medical expenses, utility bills, court judgements, debts from a small company operation, and tax debts. You may get rid of all of these bills if you’re eligible for Chapter 7 bankruptcy (with the exception of tax debts less than 3 years old).
Determine how to handle secured debts
Debts that are secured by property are known as secured debts. Mortgages and auto loans are the most prevalent secured obligations. You can choose whether or not to discharge these debts if you file for Chapter 7 bankruptcy. You can simply give the property back to the lender to stop responsibility for payments if you are unable to pay your automobile or mortgage payments even after paying off all of your other obligations.
You might not want to do this if you already have a substantial amount of equity in the home. Fortunately, you may keep the property and still utilize Chapter 7 to discharge your other obligations as long as you continue to make your payments.
Stop being bothered by creditors
Calls from your creditors will stop immediately if you file for Chapter 7 bankruptcy with the aid of an attorney. Once you get legal representation, your creditors are obligated by law to communicate with that attorney exclusively on your debts. Additionally, when you file for bankruptcy, all of your unsecured obligations will be discharged, and creditors won’t have any more grounds to pursue you.
Boost your credit rating
You can raise your credit score by declaring bankruptcy under Chapter 7 as an additional advantage. Your credit score will deteriorate as long as you have outstanding, past due obligations. But you may raise your credit score by paying off these obligations and adopting wise credit practices going forward. This will enable you to receive new funding when you need it, as well as to pass background checks and rental applications that entail credit screens. It will also help you have a fresh start in your financial life.
To get started contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free legal consultation.