The Pros and Cons Of Filing Chapter 7 – Massachusetts Bankruptcy
Although it is an enormous step, personal bankruptcy can be a very necessary step to help you get your finances on track. Before you file for Chapter 7 bankruptcy, there are both good and bad aspects to consider.
This isn’t a quick fix for your financial problems and it’s not easy. You must first determine if you are eligible and then weigh the benefits and losses you will experience once you file Chapter 7. Bankruptcy can be scary and can have a devastating effect on your personal finances. Chapter 7 bankruptcy This is what you would do if you are personally bankrupt. This is the liquidation or sale of assets to repay any outstanding credit card debts.
Here are some things you should know about bankruptcy filings and how they can affect your financial situation.
Are You Qualified?
To determine if you are eligible to declare bankruptcy, you must first pass a means test. Although bankruptcy can protect you from creditors, you must be in dire financial straits before you can use it. You must make less than the state’s monthly median income. This is not just based on your monthly paycheck. Your monthly bills and any debts you have are also taken into consideration.
What Is Discharge?
Discharge is an important part of a bankruptcy, and this stops creditors from trying to collect repayments on debts you owe prior to your bankruptcy filing. The courts have ruled that credit card companies can be repaid in bankruptcy.
This is an important benefit for people who are already under stress due to creditors trying to get loan payments. Once your paperwork has been filed, creditors cannot contact you. This postponement of calls will remain in effect until the court rules on your bankruptcy filing. Even if your case is denied, you are granted a short reprieve to file.
Similar Questions | What are the Cons?
It is important to notice a loss in assets. All assets will be used to repay what you owe. It is illegal to try to sell any items before you file to retain possession. The biggest problem with filing is the impact it has on your credit score. It also doesn’t erase any bad debt history, even if all of your debts have been paid.
What Qualifies Under Bankruptcy?
You cannot stop child support or alimony payments after bankruptcy. You can get rid of other debts but cannot stop making alimony and child support payments to your ex-partner during bankruptcy.
Learn the consequences of declaring bankruptcy and what your eligibility for. To get on the right path, it is important to consult an experienced bankruptcy attorney. Coleman McDonald in Massachusetts is ready to protect your interests and rebuild your future. Our bankruptcy lawyers are highly qualified and experienced to help you get your case resolved quickly. From the moment you file for Chapter 7 until you have your qualifying debt discharged, we will be there to help you. Call us today to get a free consultation and find out which debt relief option is right.
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The Pros and Cons | How to File a Bankruptcy
- Is Bankruptcy Right For You?
- Bankruptcy fees
- Senior Debt Relief
- Pros and Cons
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Massachusetts Homestead Act
Declaring bankruptcy can be too frightening even to consider. However, bankruptcy can be a powerful tool that can provide significant relief to those buried under unsustainable debt. Before declaring bankruptcy, here are some things to keep in mind.
- As soon as the case has been filed, creditors will cease calling, collecting letters, repossessions, and filing lawsuits.
- The majority of unsecured debt can be eliminated. This includes missed payments, defaults, and lawsuits that could affect your credit score.
- Bankruptcy gives you a “fresh start” that allows you to fulfill your financial responsibilities.
- Bankruptcy can improve your debt-to-income ratio and allow you to rebuild your credit.
- Most, if not all of your belongings can be exempted under exemption laws.
- Your home and vehicle can be retained if you keep up with your payments.
- Bankruptcy can help you avoid foreclosure by allowing you to pay off your mortgage arrears and sell your house.
- In certain situations, bankruptcy may allow you to eliminate tax debts older than three years.
- Bankruptcy will not erase student loan debt but will stop lenders aggressive collection actions.
- Trust us; judges, attorneys, and trustees are respectful. They have heard and seen far worse bankruptcy stories than you.