Groups » New Lease on Life: Help Filing for Chapter 7 Bankruptcy

There are many stereotypes associated with filing for Chapter 7 Bankruptcy. Most of these are due to a misunderstanding of what this option is and what it allows. One of the common correlations about this filing is that people do not want to pay what they owe. This is, in fact, the furthest from the truth for the majority of people who declare bankruptcy. They seek this process because they want to take responsibility for their debts. The process of filing requires a law firm that has experience and knows the law. Depending on the state that you live in, there may be stipulations that are specific to that area. Each year millions of people file for bankruptcy because they are looking for a fresh new start.

Bankruptcy is a last resort for many people. Debt can be overwhelming and extremely stressful to deal with, to say the least. This is especially the case where illness or even death has been the cause of this debt. The problem with debt is often more psychological than it is anything else. The perception of debt can be blinding to the masses. It's not something they physically see, or it's not something they physically deal with (other than paying the bills) daily. With Chapter 7 bankruptcy, people have a last resort in fighting their debt problem.

Consider this: Since 2009, there has been an annual average of 15,000 bankruptcy filings in the state of Colorado alone. In other states, the numbers are still high, as well. It's important to note, though, that many people find a way out through Chapter 7 bankruptcy .This only occurs when they are able to meet a certain requirement. Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, states have cracked down on those who are able to apply for Chapter 7 bankruptcy.

Types of Bankruptcy

Not everyone knows that there is more than one type of bankruptcy one can file. Chapter 7 is the most commonly filed form of bankruptcy today. There are two main tenets of Chapter 7 bankruptcy now that didn't exist before the act of 2005: a means test, and financial counseling. These are important because it helps you determine whether you are eligible for Chapter 7 or not. There are a number of things that will be considered to find out if you meet the requirement for filing. This may include looking at the amount of debt that you have. It also includes considering the companies or banks that you owe.

If you are swimming in debt, it would be beneficial to have someone, a professional and experienced bankruptcy attorney in your area, to help you through the process. It's important because they know what your rights are during this stressful time. It doesn't stop there, though. After it's been determined that you qualify for Chapter 7 there is a still a long checklist of things you have to go through and a bankruptcy lawyer will help guide you through it.

Determining Factors

The determining factors are used to find out which people meet the requirement for filing Chapter 7. Due to legislation passed down in 2005 it makes it more difficult to file for bankruptcy just to get out of debt. The means test is done to see what your income versus assets look like and how much you can pay and when. It is, in short, a top-down audit on your financial situation including everything you have saved for a rainy day. A means test also means that you will more than likely be assigned a financial counselor to deal with.

Hiring a bankruptcy attorney is a good way to easily handle this process. There are many details that will determine your eligibility. You will also find out that there are steps related to filing for Chapter 7. A qualified attorney can walk you through these steps and provide the legal services that you need. Most firms offer potential clients a free consultation. This is a great time to get your questions answered about this entire process. It will also help you to know exactly what to expect.

What to Expect Next

You can bet that creditors will try everything in the book to get what they want. Everything from your retirement to your social security is game for them – however, that's not what they're entitled to within the law. They have an assortment of tactics at their disposal so going at it alone can be a dangerous thing. Your assets will be liquidated but many people just don't know what they're entitled to. You always want what's best for you and having a bankruptcy lawyer can help you go a long way.

They will help you figure out what will happen next and what you need to do. Most of all, they are your support with the debt relief situation you have on hand. Outside of helping you liquidate your assets and help you through the debt relief process, they will also help you through all the difficult paperwork and filing that would happen.

After This Process

After this process you can get started on your fresh outlook on life. Filing for bankruptcy doesn't mean it's the end of you financially. While that may be a common stereotype, it's not true. Just because one files for Chapter 7 bankruptcy, it does not mean they are incapable of applying for lines of credits or loans in their future. Bankruptcy attorneys are experienced in helping you get back on your feet in this way. You don't want to be stuck in the position of fighting off creditors daily. It becomes excessive and too stressful. Without the proper representation creditors may try to squeeze every penny out of you.

Debts accrue for a number of reasons. As you're doing your best to stay ahead of it and pay off debt each month, there are cases where you can't. Don't let it get out of hand for you. It's not worth the stress. Hire a bankruptcy lawyer and see what your best options are. You might not think so now, but liquidating your assets to pay off debt can have a liberating feeling to it. If you are in debt and are looking for options hire a Chapter 7 Bankruptcy attorney today and see for yourself what kind of help is out there.