What to Expect After a Chapter 7 Bankruptcy Claim
When it comes to repairing a bad financial situation, personal bankruptcy is one of the most often recommended procedures. Although there are certainly other methods for getting your finances back on track, bankruptcy may be the only option for people that need to completely start over. To be certain, claiming bankruptcy will not entirely erase your financial obligations, nor will it do your credit score any favors. However, if you’re looking for a way to quickly stop the harassing calls from your creditors then Chapter 7 bankruptcy protection may be right for you.
Before claiming bankruptcy it’s important to understand what you should expect after the process has been initiated. Once you’ve completed the mandatory credit counseling sessions and have paid your paperwork and filing fees, a discharge will be issued that will release you from certain types of debts. Essentially, once a debt has been discharged the debtor is no longer required to pay it back. This also means that any creditors that are associated with discharged debts can no longer communicate with the debtor regarding them. This is good news for the debtor, since it means an end to the harassing calls, letters and emails that they’ve likely endured prior to the bankruptcy filing.
Of course, the news isn’t all positive for the debtor. In fact, any “non-exempt” personal assets owned by the debtor will be used to pay back the creditors. These assets will be defined during the initial filing phase of the bankruptcy process. For a more complete explanation of what to expect during a personal bankruptcy proceeding, it’s important to contact a reputable bankruptcy attorney. They can explain how to file bankruptcy and can even help to explain some of the alternatives to bankruptcy that exist. To find an attorney, simply open up your web browser and search for legal representatives in the area that you live. Selecting an attorney that understands the laws within your state of residence is crucial, since laws and regulations can vary from state to state.
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