Things to know when contemplating filing for Chapter 7 bankruptcy

On behalf of Furr & Cohen, P.A. posted in chapter 7 on Monday, May 9, 2016.

Almost everyone has debt. Financing options involving obtaining credit is commonplace. In most cases, this is manageable and helps to establish a good credit score, as well as helping in circumstances where paying cash is not an option. However, there are times when debt can grow to an extent where we suddenly find ourselves in a position where the amount of money we owe far outweighs what we can pay. When you are struggling with debt, bankruptcy can be the only option to repair the situation. Bankruptcy is defined as a legal process which allows a person who owes more money than they can repay to have the entire debt forgiven. In a case of Chapter 7 bankruptcy, the person filing, known as the debtor, may be required to surrender assets, if any, to pay certain debts. This process is known as asset liquidation.

Having more debt than you can handle can cause significant anxiety and stress in your life. Often, this pours over into your relationships and family life, resulting in unnecessary conflict between you and your partner. It may, at times, feel hopeless, and you will likely feel overwhelmed, which can even lead to depression and a feeling of helplessness. Adding to the stress can be constant phone calls from creditors, or the need to go without necessities to help pay bills. The inability to pay debt can be so overwhelming you feel like the weight of the world is on your shoulders. There are experts available to help you through this difficult decision.

When facing such a difficult decision such as whether or not to file for Chapter 7 bankruptcy, a good first step is conducting research on what exactly this means, and what the process entails. The next step is trusting in the knowledge you have gained and understanding that there are ways to get out from under a cloud of debt.

If you are struggling with debt, obtaining legal advice with extensive experience will be incredibly effective in alleviating much of your stress. Your legal representative can stop creditor harassment, as well as ensure your particular circumstances are addressed so that you can get out from under your debt and start fresh.