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If you are in a place where you cannot pay your bills because your income is not high enough to meet your financial obligations, Chapter 7 bankruptcy may be the option for you. This particular option is called “liquidation bankruptcy” because assets that fall outside of the state or federal exemptions can be used to pay back debt. If a person doesn’t have assets that fall outside of the exempt dollar amounts, then they can have their debts discharged without losing any assets.
If you are receiving collections notices, your wages are going to be or are currently being garnished, or your bank account has been levied, all of this can stop by filing for bankruptcy. It is very important to speak to a Duluth bankruptcy lawyer as soon as possible so you can take the first steps toward getting a handle on your finances.
Chapter 7 bankruptcy puts you in a position where you can once again take control of your finances. You will be discharged of your unsecured debts, which will allow you to enjoy a fresh start. The amount of stress that is removed from the situation is rather significant.
Just keep in mind that there are some debts that can’t be discharged in Chapter 7 bankruptcy. Those debts include child support, taxes, and other secured debts. The debts that can be discharged include credit card debt, utility bills, medical bills, and certain bank loans. If it is unsecured, then it can qualify for discharge.
However, the debts may be discharged at a cost. There are state and federal exemptions in place. These exemptions specify a certain dollar amount that a person is allowed to have in specific assets. For instance, a car may be allowed to be valued up to a certain amount before it would be seized in order to pay back some of the debt. A person can choose to take the state exemptions or the federal exemptions, whichever will benefit their situation the most. Some individuals lose very few assets or none at all.
Filing Chapter 7 bankruptcy may be best for you if any of the following exist:
Making the decision to file for bankruptcy can feel like the end of something, but that is not necessarily the case. Filing for Chapter 7 bankruptcy can actually be a new beginning so you can move forward rather than run in place financially.
When matters are difficult financially, Chapter 7 bankruptcy may be the solution. Your unsecured debts can be discharged so you can get a fresh start and make ends meet. To learn about how the Banjamin Kaasa Law Office, PLLC can help you, call 218-464-3397 for a consultation.