Bankruptcy is not a pleasant experience as it brings with it stigma and embarrassment. However, it is sometimes necessary because it is a better alternative for settling your debt and does not leave a permanent mark as far as your credit score history is concerned.

Most people tend to believe that by declaring bankruptcy, you risk losing all your property, but that is far from the truth. When you file for chapter 7 bankruptcy, you don’t give up any of your assets. This protection is possible because of the exemptions that give you the right to define your necessary possessions.

You need to understand how to file for chapter 7 bankruptcy so that you are in a better situation for the years to come. However, navigating through this process can be difficult, especially if you are unfamiliar with the law. But this should be the least of your worries because today, we have a chapter 7 bankruptcy law firm that helps clients like you to work through the process.

When Is The Right Time To File For Chapter 7 Bankruptcy?

If you are financially stricken, filing for chapter 7 can be your best option to help you navigate through different scenarios. You may want a pardon on your unpaid medical bills, reclaim a possessed car, or earn tax forgiveness. Whichever the reason, filing for chapter 7 becomes necessary. You can do the filling under the following situations:
  • If you have a debt of $10,000 or more and you are not able to pay back.
  • If your credit score has below 600
  • If you do not possess an expensive property
However, not everybody in the above-analyzed situation can file for chapter 7. The reason is that not all people are eligible for this kind of filing because you need to meet specific requirements for you to qualify. In most cases, people undergo a test to be able to analyze things such as your income, assets, and expenses. If you pass the test, only then can you be allowed to do the filing.

Challenges That Chapter 7 Bankruptcy Filing Covers

Credit Card Debt

When you start missing making your credit card payments, a credit card company is within the law allowed to file a lawsuit against you so that they can collect their money. However, the good news is that credit card debt is a manageable debt to resolve because creditors have limited rights against you. With sound legal advice and a solid strategy, you should be able to get your credit card back on track.

Foreclosure

Foreclosure happens even if you have genuine reasons as to why you are unable to pay your mortgage. However, we have ways of fighting foreclosure. For instance, bringing on board legal experts to handle your case can make a big difference. Through judicial and non-judicial options, an attorney can help stop disclosure. Some of the things they can do to prevent disclosure are negotiating with your lenders on a loan modification.

Medical Expenses

Medical bills can put you and your family in an awkward financial situation. Many people usually use their credit cards to settle such bills. The right attorney can help you navigate the legal process to get out of this mountain of debt.

By filing a chapter 7 bankruptcy, a court can appoint a trustee to sell your assets to recover the debt. The same chapter 7 can help you get back some assets by protecting necessities that you need to maintain your minimum standard of living.

Wage Garnishment

Wage garnishment happens when there is an automatic deduction of a certain amount of money from your salary through your employer. The action is usually as a result of a court order of which your employer must obey. If the garnishment is for taxation purposes, there is no way out of this.

However, it is for other reasons, and it can be easy to escape it if you get the right wage garnishment attorney to help you fight back. The attorney can help you file for chapter 7 bankruptcy or contest the wage garnishment order.



Tax forgiveness


Tax evasion can be a headache because it includes harsh measures like a wage garnishment or asset seizure. However, there are ways of circumventing through the process when you happen to miss tax payments. The right attorney can help you have your taxes forgiven by navigating through the system. Through chapter 7 bankruptcy filing, you will have to surrender some assets and property to recover the money you owe. However, non-exempt assets will not be part of those assets.



Facing Repossession


When you borrow money to purchase a car, it does not mean that you own it because if you don’t make the payments in good time, your creditor or debt collector will repossess the vehicle. However, we have ways of fighting back repossessions. Through a legal counsel, you can legally stop the repossession process. He or she can file for chapter 7 to allow you to keep the vehicle through reaffirming or redemption.


Conclusion


Chapter 7 bankruptcy filing is one of the easiest and straightforward means for your debt forgiveness. However, you will need an attorney who is vast with the law to help you with the process.