Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.
If you are considering filing a chapter 7 bankruptcy, you may be wondering if doing so is worth the potential negative effects on your credit. You should keep in mind that credit can be rebuilt over time and that if your finances are in chaos, a bankruptcy may be the only solution. A chapter 7 bankruptcy provides several different positive effects that more than counteract the negative ones, so read on to learn more.
The Debt Problem
Debt is the problem and getting rid of it is the job a chapter 7 bankruptcy. There is simply no better method of eliminating your debt than through this method. There are two main types of debt and the way that bankruptcy deals with each differ.
Unsecured Debt: If there is one debt issue that sends consumers running for debt relief, it's credit card debt. When a debt falls into the unsecured category, it means that there is nothing to secure it. In other words, if you fail to make your payment on a credit card, no one will be showing up at your home to take your car or any other property. The money you owe to credit cards, personal loans, payday loans and a few others are known as unsecured, and you can expect to be able to include this debt in your chapter 7 bankruptcy.
It's no secret that this is one of the debts that can also bring the most fervent collection actions. Since the credit card agencies cannot threaten to take your property, they must constantly "remind" you of your obligation to pay your credit card debts. As you may have witnessed, the phone calls and letters never stop to get a payment. Once you file your chapter 7 bankruptcy, however, you need never hear from another bill collector again. Bankruptcy's automatic stay puts an end to all debt collection efforts, but that is not even the best thing about filing. Once you file, you never have to pay a single dollar to any unsecured debt again. Do the math; you may be looking at a lot more of your hard-earned money going to other things than those credit cards.
Secured Debt: The other side of the debt coin is secured debt. While using bankruptcy to get rid of unsecured debt is great, secured debts like cars and homes cannot be included. On the plus side, you do get some temporary relief from foreclosure, eviction and repossession actions. If you can get caught up on those bills, you may not lose the property attached to them. The issue of property loss is a bit complicated, so speak to your bankruptcy attorney to find out what you might be risking by filing for a chapter 7.
Talk to a bankruptcy attorney about a chapter 7 filing today.Share