A Fairfield, CT chapter 7 bankruptcy lawyer knows that attempting to overcome significant debt can seem like a challenging task, particularly if you are faced with job loss, medical emergency, or other financial disaster. You may be overwhelmed with creditors contacting you constantly and are unable to imagine a path where you can pay your debts off completely. Fortunately, there are options that can help you build towards financial stability. When given a choice, many people prefer to operate under chapter 7 bankruptcy compared to chapter 13 (there are six bankruptcy chapters), because it allows them to use assets to cover their debt and then possibly have the remaining cleared away. Our team at The Law Offices of Neil Crane are here to give you the sound advice you need when deciding whether to file for bankruptcy, and which chapter will suit you best. If you have more questions about this, please reach out today.
Advantages Of Chapter 7
Chapter 7 tends to be the quicker and more common bankruptcy choice. Aside from chapter 7, the other bankruptcy chapters include chapter 9 (municipality bankruptcy), chapter 11 (reorganization), chapter 12 (family fishermen or farmer), chapter 13 (debt adjustment), and chapter 15 (cross-border cases). As you can see, each chapter is designed to meet that specific circumstance and whether the debtor prefers to keep or sell their assets to amend debts. Through chapter 7 bankruptcy, you can obtain immediate relief from debts. After you file debts for your credit cards, unsecured debts, and personal loans, all collection attempts against you halt. You won’t get demanding collection letters and calls, and wage garnishments will stop. If you are dealing with a pending repossession, eviction, or foreclosure, bankruptcy gives you a temporary rest so that you can reassess your situation. Most possessions are considered as exempt assets, so you can keep your home, vehicles, pensions, and potentially jewelry up to a set value. For an individualized consultation about your financial situation and filing for bankruptcy, a Fairfield chapter 7 bankruptcy lawyer is ready to offer help.
Before you file for bankruptcy, it’s important to know what the potential drawbacks could be. For instance, you will have a bankruptcy mark on your credit report for several years and your credit score will go down to some degree. Usually, the higher the credit score, the more greatly it is impacted. It can be difficult to get new lines of credit in the near future, however, filing for bankruptcy is a long-term path to better finances. Many debtors find that bankruptcy is what allowed them to feel better and more in control of their lives. Deciding whether to file for bankruptcy is a big choice, and should not be made lightly. But this resource shouldn’t be underestimated either, as it can yield life-changing benefits. If you have questions about this, our team at The Law Offices of Neil Crane are glad to speak with you.