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Filing Chapter 7 is one way for you to get a new lease on your
financial life. Although it does have serious implications, it's
something you need to consider if you're in a situation that
requires it. None the less, it's crucial for you to
weigh your options. Is this something that you really need to do? Is this
something that you can avoid? It can be very confusing when you're
trying to
understand what the right direction is. In fact, you have made an
agreement with your creditors to pay them and now you are having a
hard time making ends meet.
When To File
You need to determine if filing Chapter 7 is the right course for
you and your family. You need to consider this carefully because
there are many people that file Chapter 7 when it's really not
necessary. Because of this, new laws have are in effect that are
used to determine if you qualify to file in the first place. Your attorney
can take
you through the steps to understanding if Chapter 7 is right for you.
If you don't qualify, your attorney may recommend a Chapter 13
bankruptcy filing.
Sometimes filing Chapter 7 is a good
thing. Many families, especially those without insurance can face
catastrophic medical bills that bury them in debt. If you're in that
situation, this may be a good time to file. If you can’t pay them
off or you have been injured and don’t have a means to pay them off,
you may have to file just to give your self an opportunity to
survive..
Or, you may be in the position that credit cards or real estate debt
have mounted quickly.
The rule for those that file Chapter 7 is that if you have assets
that in most cases, they will need to be sold off to repay the debt
that you owe. Each state has different allowances for what can be
kept and what can not. Again, your attorney, and you do need an
attorney for this, will work through this
process with you.
The best course of action for many is to look at what you owe,
factor in the interest that you will be paying on that amount and
determine how long it could possible take you to repay your debt.
Although you may not realize it, it may be far too costly in your
financial future to not file Chapter 7.
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