Dealing with overwhelming amounts of debt not only impacts your current financial situation but can also have a huge impact on your future. This is because even if you are able to stabilize your financial situation, past-due debts can prevent you from obtaining credit and may even exclude you from certain job or housing opportunities. That is why it is so important to address this debt even if you do not have the ability to pay it off. One very effective way of accomplishing this goal is by filing for Chapter 7 bankruptcy with the help of a bankruptcy attorney. Read on to learn more about how a bankruptcy lawyer can help you get the financial fresh start you need and deserve.
Eliminate Your Legal Responsibility To Pay Certain Debts
Chapter 7 bankruptcy allows you to completely eliminate your legal responsibility to pay certain debts. These debts typically include past-due credit cards, utility bills, and unsecured loan payments. Medical bills can also be eliminated when filing for this type of personal bankruptcy.
While many debts can be eliminated as part of a bankruptcy settlement, it is important to note that not all debts will be eligible for discharge. For example, debts that are secured by real property such a mortgage or car loan will typically not be able to be discharged as part of this process. You will also be unable to discharge any debts that you accumulate after your bankruptcy petition is filed. Consulting with an experienced bankruptcy attorney is a great way to determine exactly which of your debts can be discharged and which cannot.
Protect Many Of Your Personal Assets
Many people choose to avoid filing for bankruptcy because they fear that they will be forced to sell or surrender all of their personal assets in order to pay off their creditors. However, the truth is that Chapter 7 bankruptcy actually allows you to protect many of your assets that could otherwise be seized or garnished by creditors for outstanding debts.
For example, if you currently own a vehicle that does not have an active lien against the title, you will be able to keep this vehicle as long as it does not exceed the value outlined by the asset protection laws in your state. Without the protection that bankruptcy laws provide, this particular asset could have a lien put against it in order to satisfy a debt that you owe.
When you are meeting with a bankruptcy attorney about your case, it is important to be completely honest and forthcoming regarding what assets you have. This will allow your attorney to best advise you regarding what type of personal bankruptcy will offer the maximum protection for your assets. Check out the website of a bankruptcy attorney for additional reading.