Is Chapter 7 Bankruptcy Right For Me?
Chapter 7 is often referred to as “straight bankruptcy.” Unlike Chapter 13, Chapter 7 is not a repayment plan. It allows you to wipe out credit card debt, medical bills and most other loans free and clear. It also allows you to continue making payments for the items you desire to keep, like your home or your car.
Chapter 7 can provide tremendous financial relief following a divorce, job loss or medical emergency. Many consumers can erase or eliminate the following:
- Credit card debt and other unsecured debts
- Home foreclosure debts
- Medical debts
- Divorce-related debts
- Some IRS tax debts
- Lease and contract debts
As soon as you file for Chapter 7 bankruptcy, a bankruptcy court will grant an “automatic stay.” From that moment until your bankruptcy case is discharged, bill collectors and other creditors will be disallowed from pestering you.
Will I Lose Everything If I File For Chapter 7 Bankruptcy?
This simple answer is no. In some cases, a trustee in a Chapter 7 bankruptcy will require a consumer to sell assets to help pay off debt before the remaining debt can be discharged. You may worry that your furniture, clothes or personal items will be taken and sold if you file.
Like other states, Tennessee allows people who file for bankruptcy to keep certain property. For example, if you are married and have minor children in your home, you can keep your personal residence even if you have up to $50,000 in equity in the property if you opt to file Chapter 7 bankruptcy.
Will I Ever Be Able To Get Another Loan After Filing Bankruptcy?
Although a Chapter 7 bankruptcy will remain on your credit report for seven to 10 years, you can begin rebuilding credit in as few as three months from the date you file your case.
Most Chapter 7 debtors with regular incomes are able to finance vehicles in as few as four months and will likely be able to finance a home in three to five years if they maintain good credit after filing.
An Experienced, Compassionate Attorney To Help You
I understand the fear and uncertainty that crushing debts can cause individuals, families and business owners. Schedule an appointment at my office to talk about your debts and whether Chapter 7 bankruptcy is right for you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.