A sudden job loss, a significant illness, a divorce, or another unfortunate life event can force you to take on large amounts of debt. If you find yourself overwhelmed by this debt and you’re desperate for a way out, filing Chapter 7 bankruptcy may be the answer.
However, there are certain qualifications you must meet if you want to file Chapter 7 bankruptcy. These include some of the following:
- You must either be a corporation, business owner, or individual citizen.
- You must not have filed for bankruptcy in the past six to eight years.
- You must have received credit counseling through a court-approved provider within the past six months.
You may have hesitations about filing Chapter 7 bankruptcy because you worry about losing your personal possessions and property. But many people who file for this type of bankruptcy can keep their personal assets, including their car or their home.
However, one of the main benefits of Chapter 7 bankruptcy is that most of your qualifying debts will be discharged. This way, you do not have to work with the courts to create a repayment plan and stick to it. Additionally, when you file a petition for Chapter 7 bankruptcy, all debt collection activities must stop.
We can help you determine if you qualify for Chapter 7 bankruptcy and if this type of consumer bankruptcy is the right choice for your personal situation. To consult with us or to learn more about Chapter 7 bankruptcy, reach out to our office today.