At some point, most experience a time when finances are tight. While this might be a temporary situation for some, it can be permanent for others. When debt is looming over you and it is difficult or even impossible to pay your bills each month, it might feel hopeless.
Although this is a vulnerable and emotional experience, it is also a time when you have viable options and solutions. Filing for bankruptcy could be the remedy to your financial troubles, making it imperative that you explore and understand this process.
There is some stigma and pushback when it comes to bankruptcy, as it might be an indication of failure or poor money management. However, this is not true. You cannot always control when and if financial troubles will come your way, but you can control how you address debt or seek debt relief.
At Hochberg, Costello & Baron, our law firm has experienced firsthand the financial freedom and debt relief a Chapter 7 bankruptcy can provide our clients. This is why our attorneys are dedicated to serving our clients, so they can remove the burdens of debt.
With a Chapter 7 bankruptcy filing, any unsecured debt can be discharged. This includes credit card debt, medical bills, personal loans unsecured with collateral and other unpaid bills. Certain debts cannot be discharged, including delinquent child support payments, alimony, state or federal fines, student loans, home mortgages, car loans and other secured debts.
Debt relief and proceedings
The moment you file for bankruptcy, you will have relief from creditors. With an automatic stay in place, creditors and bill collectors can no longer contact you or harass you. Additionally, any wage garnishment or foreclosure proceedings will be halted.
To begin the Chapter 7 bankruptcy proceedings, you must be qualified for this type of bankruptcy. Eligibility is based on the financial means test. Because the ability to repay versus the amount of debt is a determining factor, your income, employment and any equity in real estate are considered.
If you are eligible and have filed with the court, a hearing will be scheduled, and an appointed trustee will review your case. If there are no issues or objections, you are likely to have your debt discharged in 60 to 90 days. This process can be quick; however, it is not a decision to make with haste. A legal professional can help explain the process and answer any questions you have about your debts, relief options and any future impacts.