If you heard that someone recently filed for bankruptcy an old friend or coworker maybe. That information may instinctively be changing your opinion of them, questioning how responsible this person could possibly be. Bankruptcy has the massive stigma of a big life failure because of our popular understanding of the word. Bankruptcy, unlike how it's portrayed in TV and the movies, is not at all as bleak or hopeless as they make it seem. For every case of schadenfreaude we experience, there's a family down on it's luck finally seeing the light on the otherside.
For those who have gone through the bankruptcy process, it can often feel like a massive weight is being lifted off of them. Living in crippling debt is an unsustainable situation which often causes severe stress at a minimum. Bankruptcy can be viewed as a last resort but in the long run it’s often the first step in building a new and debt free future.
This article will be a quick refresher on Chapter 7 bankruptcy. This is often referred to as a total or straight bankruptcy, and it removes all of your dischargeable debts. The entire process usually takes from 3-7 months. Unlike a Chapter 13 bankruptcy, known as a structured bankruptcy, filing for Chapter 7 will result in losing all of your non-exempt property, which will be sold by a trustee. If there is something that’s non-exempt that you wish to keep like a house or vehicle, you may wish to reconsider. There’s no minimum debt amount needed to file for Chapter 7, but you can only file once every 8 years.
It should be noted there are a few non-dischargeable debts such as back child support payments and income tax debts you incurred within the last three years from when you filed.
A bankruptcy will stay on your credit report for ten years. We know that sounds like you'll be unable to do anything that requires a credit check but not necessarily. You may be able to make some credit dependent purchases like a car or a home, but like so many things, it would be judged on a case by case basis.
If you have been feeling a significant financial burden recently and are contemplating whether a Chapter 7 bankruptcy may be right for your future, we'd recommend sitting down and reviewing your finances and whether or not there's a good possibility you will be able to pay the balance. If you are looking at a future where you can't afford basic necessities, bankruptcy would most likely be a good option. Remember the Simon Law Group has bankruptcy experts standing by to assist.
If you are seeking representation for a bankruptcy, call today for a free consultation 800-709-1131 or fill out a contact form on our website for a no-cost consultation. We hope to hear from you today!