Recently with the increase in unemployment rates and harder economic times many people are turning to the option of filing for Chapter 7 Bankruptcy to give them some financial relief. Some of the most common reasons for considering bankruptcy are excessive credit card debt and large medical bills but there are all sorts of situations where filing for bankruptcy may be an option for you. There are many considerations that must be contemplated when deciding whether to file Chapter 7 Bankruptcy or not. Some of these include the costs to file, will filing affect a new job, and how medical coverage is affected.
Bankruptcy is a federal court proceeding that might allow a person with large debts to get a "fresh start" by freeing them from many or all of their debts. At the same time, a trustee of the court can sell the person's property (unless it's exempt) and divide the proceeds to pay off the person's creditors.
While it is possible to file Chapter 7 Bankruptcy without a lawyer it is wise to hire an experienced bankruptcy attorney. This is because without a attorney an individual may have to fight with creditors and may not have a clear understanding of all the court processes involved with filing this type of bankruptcy. A much worse situation may occur if a discharge of debts is not obtained.
People who are unemployed and file Chapter 7 Bankruptcy do not have to fear a garnishment of wages. This also applies to people who are employed because an automatic stay on all collections against the filer is put into affect by a judge once bankruptcy is filed.
It is your statutory right to declare bankruptcy. However, the exercise of that right may have consequences. Even though it is illegal for any federal or state agency to discriminate against you for exercising your right to declare bankruptcy private agencies can, and often do, discriminate against people who declare bankruptcy. So it's important to have all the facts and make sure that you understand what is involved in the process.
If you want to find out if bankruptcy is the right option for you, please don't hesitate to contact me for a free initial consultation where you can get all your questions answered