If you are in a tough financial situation, you may be considering Chapter 7 Bankruptcy. Before you move forward, consider several alternatives first. If your financial pressures are due to Credit Card or other debt, consider debt consolidation or working with a financial counselor. You may have already taken those steps and find no other options than bankruptcy.

Chapter 7 bankruptcy may help you in eliminated most kinds of unsecured debt. Examples of these debts are credit cards; personal loans, judgments, and medical bills.

Most of the time, you can keep your property. You must be current on your car and mortgage payment. In addition, the courts will assess the amount of equity you have in your current property. If you have significant equity, you may be asked to leverage your equity to pay your debts first. The goal with Chapter 7 is to eliminate your debt while keeping your personal belongings.

There are some key facts that you need to know before you commit to Chapter 7 bankruptcy.

Here are a few answers to common questions for those filing for Chapter 7. Please read further.

Will creditors continue to harass me?

You will want to retain a Chapter 7 Attorney immediately. By working with a specialized attorney, they will immediately give you record number. When the creditors call, you can give them your record number and refer them to your attorney.

Will I lost everything if I file for Chapter 7?

Typically, you will retain all your personal belongings, including your house. A good Chapter 7 lawyer will insure that your personal effects are safe. Most often your car will be safe as well. Your attorney will leverage state bankruptcy exemptions to protect these items.

More often than not you will be more at risk in losing your personal property if you do not file for Chapter 7 to protect them. Make sure you file before you get so far behind that you cannot do anything and get out of the rut you find yourself in.

Will everyone know I have filed for bankruptcy?

The short answer is no. The only parties that will know are the IRS, creditors, and the bankruptcy court. Your employer will not be notified when you file for bankruptcy either unless they are also a creditor of yours. Your bankruptcy is public record but no notifications will be made.

How do I know if I should file for Bankruptcy?

If you are currently facing the repossession of your car or home, you will be better off considering Chapter 7. This will be a better alternative and you should move now before it is too late.

How do I choose a good Chapter 7 Attorney?

If you are considering Chapter 7, you must find a specialized Chapter 7 attorney that understands the laws and is current on any changes that my impact your situation.

When you call a bankruptcy attorney ask them how many bankruptcies they have handled in your state. Make sure you educate yourself on all your alternatives. You can easily do a quick search on the internet and do some quick research before you hire and commit to an attorney.

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