Chapter 7 Bankruptcy Lawyer
Trying to get through mounting debt can be difficult, particularly if you are faced with job loss, a medical crisis, or other financial disaster. You may feel stressed and overwhelmed about the status of your finances, especially as creditors continue to call and pester you without relent. Thankfully, there are financial options available to individuals and businesses that can help them rebuild for their financial future. When given a choice, many people prefer to use Chapter 7 bankruptcy instead of other chapters because it allows them to begin anew by discharging their personal loans, credit card debt, and medical bills, in addition to allowing them to recover faster.
Compared to other bankruptcy chapters, which can take years to finalize, Chapter 7 bankruptcy is more prompt. Most cases get resolved in 3-4 months from when the application is first submitted. The typical process entails a consultation with a bankruptcy lawyer, gathering necessary information and documents, taking a credit counseling course if desired, filing a petition, completing required education courses, then an order for discharge from the court. For many debtors, their discharge order is received within a hundred days after the initial filing. A shorter timeline enables people to financially recover and relieve their mental distress quicker, which can ultimately make a big difference for that person’s health and life.
Through Chapter 7 bankruptcy, a person can have their debts eradicated by using some assets to pay back their creditors. As a chapter 7 bankruptcy lawyer explains, once a debt is discharged, it means you no longer have a legal obligation to pay. By comparison, with Chapter 13 bankruptcy, a person would have to agree to abide by a repayment plan over the course of several years, in which the rest of the debts may be discharged after that. There are other bankruptcy chapters, including Chapter 9, Chapter 11, Chapter 12, and Chapter 15. Each chapter is useful for a specific set of circumstances based on what the individual, business, or municipality needs.
When you get behind on payments, you may start to get persistent calls from creditors. These creditors know that their strategies are invasive and harassing, but they continue to do so anyway. Such communications constantly can drain someone emotionally, leaving them discouraged and frustrated. Many people consider speaking with a law firm for protection during this time, similar to the lawyers at Therman Law Offices, LTD. Filing for bankruptcy halts these calls and creditors are no longer permitted to contact the debtor about outstanding dues. Furthermore, when applying for Chapter 7 bankruptcy, a pause gets put on any enforcement actions and legal proceedings. This is because of the automatic stay that gets imposed after filing for bankruptcy. It is easier to assess one’s finances when they aren’t having to deal with contact from creditors. The stress and weight from knowing debts are going unpaid can be difficult to deal with even without creditor harassment. All in all, filing for bankruptcy can be a beneficial tool in getting on the path to more financial stability now and into the future.