Are you considering filing Chapter 7 bankruptcy? Before you do, it helps to understand any potential benefits. Individuals who file for Chapter 7 bankruptcy must first qualify. You will need to pass a means test, which looks at your gross income in the last 6 calendar months prior to filing. Your current budget and your assets are also reviewed in preparation to filing a Chapter 7. You also must complete a credit counseling course prior to filing bankruptcy.
The following five benefits are the potential results of filing Chapter 7 bankruptcy. Speak to an experienced bankruptcy lawyer in Georgia to find out if you are likely to qualify for Chapter 7 bankruptcy.
First and foremost, for most people who file for Chapter 7 bankruptcy, they are seeking to eliminate debt. You may be able to get rid of most, or even all, of your debt when you file for Chapter 7 bankruptcy. Debts that can be discharged include but are not limited to: medical expenses, credit card bills, personal loans, and cash advance loans.
Relatively Fast Process
For most people, a Chapter 7 bankruptcy is completed within 6 months from the date of filing. Additionally, you don’t have to pay a trustee each month in a payment plan than lasts between 3-5 years. However, if you have a secured debt such as a vehicle loan, and you wish to keep the vehicle, in most cases you will continue making regular payments to your creditor on that particular debt. If alternative debt relief options will take longer and still impact on your credit, you may wish to consider Chapter 7 bankruptcy.
Improving your Credit Score
A Chapter 7 bankruptcy allows you to begin improving your credit score. It prevents creditors from reporting late payments, which go on your credit report. Additionally, the balance due on your debt is recorded as zero once the discharge is entered in your Chapter 7 bankruptcy. This is a new start for you, where you can get back on your feet financially.
The stress of debt can destroy those who are buried under it. When you file for Chapter 7 bankruptcy, and have your debts discharged, it will feel like a weight has been lifted off your shoulders. This is your chance to start again without the stress of debts always waiting for you.
One of the most difficult aspects of debt to handle is the constant pursuit of creditors. You may receive letters, phone calls, emails and, sometimes even creditors appearing at your door. You may be facing lawsuits and wage garnishment by creditors. When you file for Chapter 7 bankruptcy, all contact or attempts to recover debt is stopped by what is called an “automatic stay” issued by the court.
Now that you know some of the benefits of filing Chapter 7 bankruptcy, it is time to contact to an experienced bankruptcy lawyer in Georgia to discuss the process in further detail.
H. Lehman Franklin P.C. can help you if you want to file for Chapter 7 bankruptcy and need a dependable lawyer who understands the process. We have offices in Georgia and a team of legal professionals who know what you are going through and can offer support.
Call the offices of H. Lehman Franklin P.C. at 912-764-9616 or email at email@example.com. We are your trusted bankruptcy law firm in Georgia for supporting you when you are filing Chapter 7 bankruptcy.