When you look at your bills, do you often wonder how you will pay them? Do your balances keep increasing each month, and do you wonder if you will ever pay them off? When people reach this point in their finances, they often turn to professional help. Filing for bankruptcy is one option you can consider, but here are three things to know about Chapter 7 bankruptcy before choosing it.
Signs You Might Need to File
The first thing to consider is your need for professional help. Have you looked into other forms of debt relief before considering bankruptcy? You can choose a few other options for getting out of debt, including debt consolidation and debt settlement plans. If you think that bankruptcy is right for you, it might be helpful to view some of the signs. Here are a few:
- Your debts keep going up each month.
- You maxed out your credit lines.
- You cannot even pay your minimum payments on most of your debts.
- You are skipping some payments.
If you recognize these signs, you might want to talk to a bankruptcy attorney.
The Risks of Filing
The second thing to consider is the risks of filing. There are several downsides of filing for Chapter 7 that you should know about before choosing it. The first is that you might have to give up some things you own. If you have assets that the court can take and sell, they will ask you to turn them over to them. The second risk is the effects bankruptcy has on your credit. When you file a Chapter 7 case, the posting will remain on your credit file for ten years.
The Benefits of Filing
The third thing to consider is the benefits you can experience from filing. The first benefit is the forgiveness that the court will offer for any qualifying debts. If you receive forgiveness of debt, you will not owe these debts. The second benefit is that this branch is fast. After filing your case, you will only go to court once, in most cases, and you can complete the case in well under one year, which is very fast.
Are you ready to learn more about Chapter 7 and other bankruptcy options? You can schedule a free consultation visit with a chapter 7 bankruptcy lawyer for further information. Contact one in your city today to learn more about your options for debt relief.