4 Facts About Chapter 7 Bankruptcy

Bankruptcy is not the outcome in life that most of us expect, but when we find ourselves on that unknown path, it may be the best option to put us back on the right path. Take a look below to learn four important facts about Chapter 7 bankruptcy that may ease your mind about this process. While it’s not what you wanted to happen, perhaps it can put you back on the straight and narrow.

1- No Repayment Plan

Unlike Chapter 13 bankruptcy, you are not required to repay debts when you file for chapter 7 bankruptcy edmonds wa protection. Once the judge signs the okay, you are free and clear of the debts that you owed, with the exception of government/federal debts. The debt, does however, remain on your credit report for a period of up to 7 years.

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2- Talk to an Attorney

While an attorney isn’t technically needed to file a bankruptcy lawsuit, their expertise and guidance come in handy at this time. With an attorney by your side, it’s easy to quickly get things done -the right way. Most lawyers offer free consultations to help you learn more about your case and the specifics of the matter.

3- Stop Creditor Calls

Once you declare bankruptcy, creditors receive a cease and desist order that prohibits them from any further contact. Many people find creditor calls to be stressful this is one way to stop the calls and get back your peace of mind.

4- Income Matters

Your income is an important part of a Chapter 7 bankruptcy. You must fit within the guidelines to qualify to file for bankruptcy protection, otherwise you won’t be approved by a judge. You must also take a credit counseling course before court at your own expense.