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The Pros and Cons of Filing for Chapter 7 Bankruptcy

Bankruptcy law can vary greatly form one state to another so knowledgeable counsel is absolutely critical if you want to get the best possible ruling from the judge for your case. Professional bankruptcy legal services can help you understand the basics involved with bankruptcy in general and answer all of your questions. From ensuring you understand the basics of bankruptcy law definition to making sure you are on the same page about the service they provide, these pros offer an invaluable service.

No matter what all is involved in your particular case, bankruptcy organizations and your local law firm can likely provide valuable assistance. From filing papers and writing the bankruptcy letter to representing you in court and helping you adjust to life after the ruling, a good legal support team can make all the difference in the world!

Professional legal assistance can also help you understand the basics which is legal guidance is always a good thing when dealing with this sort of issue. So, call your local law firm today to see what professional bankruptcy services are available to you today!

Many people are on edge in their decision surrounding filing for bankruptcy. It’s a big financial and emotional decision with long-term effects on the direction a person takes, their finances, and how they might recover from a crushing financial burden. All types of bankruptcies have many pros and cons, which is why it is so important to weigh each before making a final decision.

A Chapter 7 bankruptcy allows a person to start over financially with a clean slate. Typically, most debts can be extinguished. All active bankruptcies will stop debt collectors until the matter is resolved, which provides many a welcome relief. When a person begins to deliberate this decision, most ask a common question, “Am I eligible for Chapter 7 bankruptcy?”

However, to successfully file for insolvency, a person must know precisely what steps are involved to ensure things go as smoothly as possible. A personal bankruptcy lawyer can help a person determine their eligibility, fill out all the necessary paperwork correctly, deal with creditors, give helpful advice for starting over, and attend final bankruptcy hearings with the person filing.

Finances are complicated and once you fall behind, it can seem like an uphill battle. While it may be a disheartening decision, filing for Chapter 7 bankruptcy may be in your best interest. Doing so may make it easier for you to start over with a clean slate.


Video Source

This video will discuss both the pros and cons of filing for Chapter 7 bankruptcy.

A pro of filing for Chapter 7 bankruptcy is that it will eliminate almost all of your unsecured debt. Unsecured debt is where there is no collateral at risk. Credit cards, medical bills, and personal loans all would fall into that category. Taxes do not go away, however.

The biggest con of filing is that your credit will take a significant hit. That is unavoidable, unfortunately. It is common for your credit score to drop around 100-150 points and that will stay on your credit history for 10 years.

If you are considering filing for Chapter 7 bankruptcy, carefully weigh your options. It may provide you a clean slate, but there are drawbacks as well.

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