3 Things to Know Before Filing for Chapter 7 Bankruptcy
Many Americans are feeling the crunch of a down economy, whether they have been battling for employment or simply do not have enough to pay monthly bills. For some, the daily buildup of debt has simply become too much to handle. In this case, bankruptcy may be the best option.
If you are unable to make any progress on repaying your debts, we may be able to help. Bankruptcy can give debtors a fresh start financially, allowing them to regain control of their debts. For more information regarding your bankruptcy options, contact a West Palm Beach bankruptcy attorney of Eric N. Klein & Associates, P.A., at 561-353-2800 today.
Understanding Chapter 7 Bankruptcy
One type of bankruptcy popular for individuals is Chapter 7 bankruptcy. However, before you file for this type of bankruptcy, it is important to understand the following three facts.
#1: Chapter 7 Does Not Discharge All Debts
Many people may believe that Chapter 7 bankruptcy will completely clear their financial obligations to creditors. However, some creditors can petition the courts to keep their debts after bankruptcy. Additionally, certain types of loans, including student loans, cannot be discharged at all.
#2: Chapter 7 Bankruptcy is Liquidation Bankruptcy
While some exemptions can help debtors keep important properties, a person may lose most of his or her personal property during Chapter 7 proceedings. The court will collect property in order to sell it for creditor repayment. Unless a debtor can protect the property through an exemption, the property will likely be lost to the court.
#3: Chapter 7 Exemptions Can Save Homes and Vehicles
In some instances, people may hold on to their houses or their cars if they file for the right bankruptcy exemption. These exemptions need to be filed before bankruptcy proceedings begin and can be bundled together to maximize property protection.
Contact Us
If you need help dealing with your debts, but do not have the means to pay back your creditors, Chapter 7 bankruptcy might be the right option for you. To learn more about Chapter 7 bankruptcy, contact a West Palm Beach bankruptcy attorney of Eric N. Klein & Associates, P.A., by calling 561-353-2800.
