Bankruptcy could haunt you for lifetime; know the aftermaths before declaring

Posted by Swigart Law group on January 22nd, 2021

Bankruptcy is a legitimate process through which people who cannot clear their debts to pay on the finalized deadline to their creditors may seek relief from some or all of their debts. In most cases, bankruptcy is imposed by the court on the debtor.

For most people, bankruptcy is a horrible nightmare. People who don’t have a backup plan after going bankrupt can face a stressful dilemma because it’s a significant financial turmoil for a common man.

For a salaryman or even for a small business owner, bankruptcy can be a nightmare because, in this stressful situation, routine daily expenses like buying food for the family, paying bills become a primary priority of your life, and paying debts become a secondary concern. A bankruptcy filing may not be the most optimum solution for you but compared to nothing. It is the best one.

Bankruptcy Filing

A bankruptcy filing is a two-faced sword because filing for bankruptcy can get you some financial relief for the short term but can have significant long-term effects on your credit rating. According to the law, bankruptcy will remain on your credit report for 7 to 10 years.

This can significantly negatively affect your ability to open new credit card accounts and get any type of bank approval for your loans. The bank first looks at your ability to pay back the loan before granting the loan.

But file bankruptcy through a professional bankruptcy law firm in San Diego. You will get free initial consultation by our attorneys to analyze your information and determine that bankruptcy filing is the right choice for you.

Is Bankruptcy worth filing?

Are you terrified by the amount of debt you have? Are you being teased by your creditors and banks who have given you money? Are you being harassed by lawsuits, foreclosures, and repossession laws like auto repossession?

Then answer the question; Is bankruptcy filing worth it?  “yes,” and it is maybe the best option for you in your current circumstances. Chapter 7 of the U.S. Bankruptcy Code enables qualified debtors to exempt all or part of the debt. Mostly it is used for discharging personal loans and credit card account debts.

Bankruptcy Law Firm, San Diego can help you with all the legal issues because we have the best people for the jobs available 24/7 at your service. They can consult with you daily and brief you about your bankruptcy filing process daily.

Bankruptcy filing process

Chapter 7 Bankruptcy filing necessary steps are given below.

  1. Check your debt.
  2. Examination of your property exemptions.
  3. Make sure you are qualified for a bankruptcy filing.
  4. Reaffirmation of secured debts.
  5. Fill your bankruptcy forms.
  6. Take a counseling course regarding credit.
  7. Pay fee for filing bankruptcy
  8. Request for a fee waiver.

Bankruptcy Filing Benefits

Regardless of its adverse effects, filing for bankruptcy can be very beneficial for some people because it will wipe out some debts completely, which will stop banks and creditors from garnishing your wages.

In most cases, you can keep your property as the home you are living in and other essential items protected, but you will most probably lose all your luxury items. But these benefits also come at a price that will affect your credit rating.

How to Qualify

There is no minimum amount set off the law’s debt for filing for Chapter 7 bankruptcy, but there is a maximum limit in place. You can’t have more than $ 1257850 in secured debt in the form of any property like house and luxury items like expensive cars, boats, or motorhomes.

You can’t also have 9275 in unsecured forms like credit cards, medical bills, or personal loans taken from a bank or a creditor.

Non- dischargeable debts

Some debts can’t be covered by Chapter 7 Bankruptcy:

  1.       Child loans
  2.       Back loans
  3.       Court fines and charges
  4.       Alimony
  5.       Any unsecured debt which you have not filed 
  6.       Personal injury debts that are due to accidents while you were intoxicated

Association fees of homeowner can’t be discharged.

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Swigart Law group
Joined: March 17th, 2020
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