It can happen to anyone. A few bad financial decisions, unexpected medical bills, and other financial issues can lead to more debt than you can afford. If working with your creditors is not enough, bankruptcy is likely going to be the right option for your needs. Bankruptcy can help you get back on the right financial path. If you are filing for personal bankruptcy, there is more than one option. However, chances are you will be filing for a Chapter 7 bankruptcy. Here is what you need to know about this type of bankruptcy.
How It Works
Chapter 7 bankruptcy is a way to get rid of your unsecured debts. The types of debt that can be removed include credit card debt, personal loans, and even medical bills. However, you may end up losing or having to sell your property during these proceedings. For example, if your mortgage is up-to-date and you have equity in your home, it may be sold to repay your debts. Some types of property may be exempt, but the laws vary from state to state. If you are having trouble understanding how the process will work, a bankruptcy attorney will be able to help you navigate through a Chapter 7 filing.
How Long Will It Take
Another thing to know about Chapter 7 bankruptcy is how long it will take. In most cases, it will take between 4–6 months for the discharge of your debts. The best way to have your debts discharged as soon as possible is to make no mistakes when filing. A Chapter 7 bankruptcy attorney will work with you to help the process go as smoothly and as quickly as possible. After a successful filing, you can begin the process of rebuilding your finances.
How Much It Will Cost
If you are filing for Chapter 7, the chances are that you don't have much in the way of extra funds. However, you will need money to file for bankruptcy and to hire a bankruptcy attorney. The filing fee alone for Chapter 7 bankruptcy is $335. Your costs with an attorney will range between $1,500 and $3,000. While hiring an attorney may be a challenge financially, it will increase your odds of a successful filing.
If you are filing for bankruptcy, there are a few things that you should know. Consider contacting chapter 7 bankruptcy attorneys to learn more about the process.