Making the decision to file for Chapter 7 bankruptcy likely follows an extended period of time involving financial struggles, unpaid debt and contact from debt collectors. If you are in this position and unsure of how you will ever move forward from this point, you may consider the specific legal options that could be available to you. One of your options may include filing for bankruptcy, a process that provides applicants the opportunity to deal with certain types of debt once and for all.
Chapter 7 is a popular bankruptcy option for Georgia individuals struggling with a large amount of unsecured debt. This includes credit card debt, personal loans, medical bills and more. If you believe that this bankruptcy option could be ideal for you, it may be helpful to begin with an assessment of your case in order to understand eligibility requirements and other important factors.
Why Chapter 7?
Bankruptcy may not be your first choice, but it likely gives you the opportunity to confront your debt problem in an organized and efficient manner. By following the terms of the bankruptcy plan, you could emerge to a better financial future with more security and stability. Some of the reasons you may consider Chapter 7 bankruptcy include:
- You do not have many assets, and your debts total more than half of your annual income.
- Chapter 7 bankruptcy allows for the discharge of certain unsecured balances without losing your most important personal assets.
- While under Chapter 7 bankruptcy protection, the automatic stay will shield you from additional debt collection attempts and contact from creditors.
Not everyone is eligible for Chapter 7. If you earn too much to qualify for this option or you have a significant amount of secured debt, Chapter 13 bankruptcy could be a more practical and beneficial option for you.
Know your rights and options
The bankruptcy process offers you the chance to deal with certain types of debt once and for all, securing a better financial future for you and your family once the process is complete. To learn more about how this option could benefit you and provide you with a way to confront your debt problem in an organized and efficient manner, you may want to start by seeking an assessment of your individual case.