Who Should File Chapter 7 Bankruptcy?

Are You a Good Candidate for Chapter 7 Bankruptcy?

There are no hard and fast rules as to who should file Chapter 7. But, if you are in one of the situations described below, you should seriously consider discussing your options with an experienced bankruptcy attorney immediately. If you want to learn more about the Chapter 7 process, click here. To learn more about what Chapter 7 can do for you, click here.

People Should Seriously Consider Filing Chapter 7 In The Following Situations:

  1. When a person is using retirement savings to keep current on debts and there is no end in sight, that person should consider filing Chapter 7 immediately. Many people wipe out their entire retirement savings trying to stay afloat and wind up losing their homes, cars, and of course, all of their retirement savings. Remember, most retirement savings are protected in bankruptcy and creditors rarely are able to get at them to pay debts so don't waste your retirement savings when Chapter 7 can eliminate your debt without you losing your retirement savings.
  2. When there has been a significant change in financial circumstances which results in the person being unable to pay their bills for the foreseeable future. A job loss or reduction in income can be enough to force you into bankruptcy. The issue to be aware of is when you can't see getting out of debt within a reasonable time, that's the time to investigate Chapter 7.
  3. Death or loss of an income earner. If a spouse has died, or become incapacitated, that is the time to investigate Chapter 7. If the income cannot be made up within a reasonable time, then something must be done to address the debt facing the family. Chapter 7 is frequently the right answer.
  4. When you just can't take any more telephone calls from creditors and collection agencies. These calls take a tremendous toll on a person's health. Plus, the strain on relationships from constant harassment from creditors and collection agencies have ruined many otherwise healthy relationships. Don't let the stress of creditor harassment cause you sleepless nights or cause your relationship to fail. Chapter 7 will immediately stop all creditor calls, letters and debt collection attempts such as wage garnishments, lawsuits, and levies.
  5. When you are being sued by a creditor. When one creditor sues, the others will soon follow right behind. No creditor wants to be stuck holding the proverbial bag after other creditors get to your assets first. So, once the lawsuits start, it is best to start discussing bankruptcy as an option with your attorney. Bankruptcy will stop all lawsuits in their tracks. To learn more about how bankruptcy can stop lawsuits, garnishments and bank levies, click here.

If You Have More Questions

Please contact us if you have more questions or are ready to move forward and start the process of becoming debt-free. Remember, we are here to help you resolve your debt problems, so call us now!

(949) 954-7568