Chapter 7 bankruptcy Arcadia
The Drawbacks of Filing for Bankruptcy Under Chapter 7?
It's not for everyone to file for Chapter 7 bankruptcy. Even if
Chapter 7 bankruptcy appears to be the best option for you, it may not be if
you take into account some of its drawbacks.
Of CHAPTER 7's drawbacks
• Limitation on the Amount You Can Earn
In order to qualify for Chapter 7, your income must fall below a
certain threshold. A Chapter 7 bankruptcy Arcadia, will be converted to a Chapter 13 if
you have a large amount of disposable income.
• Low FICO Score
Even if you file for Chapter 7 or Chapter 13 bankruptcy, your
credit rating will be affected. For seven to ten years, your bankruptcy will
show up on your credit report. For a period of time, you will not be eligible for
new credit or loans, and you will be required to pay exorbitant interest rates
if you do qualify. For people with credit scores below 600, bankruptcy has
little impact. In reality, it will help you improve your grades within a few
years.
• Liquidation of Assets
In order to repay your creditors, the bankruptcy trustee will sell
your non-exempt assets, such as high-priced cars, real estate, and
collectibles.
• Unnecessary Promotion
When you file for bankruptcy, the details of your financial
situation are made public. Despite the fact that bankruptcy information can be
accessed by anyone, few people do so.
• Debts that cannot be discharged
Mortgages, student loans, and auto loans that are secured by
collateral are not discharged in a Chapter 7 bankruptcy. The bankruptcy does
not exempt you from financial obligations like child support or alimony that
you have to pay to your ex-spouse or to the government.
CONSIDER HIRING A ATTORNEY TO ASSIST YOU WITH THE BANKRUPTCY
PROCESS UNDER CHAPTER 7
Chapter 7 bankruptcy has both advantages and disadvantages, making
the decision to file for bankruptcy a difficult one.
Even if you can't avoid it, you'll want to consider ways to
safeguard your most prized possessions in the event of bankruptcy.
To learn more about your legal options for resolving your debt
issues, speak with a local bankruptcy attorney.
One of the simplest and fastest forms of bankruptcy is Chapter 7.
This is typically the best option if it is available to you. You can expect to
be free of your debts three to six months after filing for this type of
bankruptcy.
·
In order to achieve your financial
goals, you should file for Chapter 7 bankruptcy:
·
Your assets will be unaffected by
your large amount of unsecured debt.
·
If your property is exempt from
seizure in full or in part.
·
If your financial woes are
exacerbated by credit cards, medical bills, payday loans, and other unsecured
debt.
·
As long as you make less than the
median income in your area, you'll pass the "means test."
A Debt That Is Guaranteed
If you have unsecured debt, such as a mortgage or a car, Chapter 7bankruptcy Arcadia, may still be a viable option for you. If you want to keep the
collateral, you'll have to keep up with the payments on your debts.
Intangible Assets
You are allowed to keep a piece of property that is exempt from
bankruptcy. Most states accept furniture, clothing, jewellery, and the equity
you have in your home or car as proof of your financial worth. As a result,
bankruptcy is not designed to leave you homeless and without a place to live.
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