Chapter 7 bankruptcy.
If you’re thinking about filing a Chapter 7 bankruptcy, this means that you believe that your finances are so bad that nothing short of a bankruptcy will help. In many cases, people come to me for counseling because I am a certified consumer credit counselor, certified debt arbitrator and board certified consumer bankruptcy specialist, already believing that they need a bankruptcy. However, because I am certified in both non-bankruptcy and bankruptcy specialties, I often am able to find a way to help these folks resolve their financial difficulties without filing bankruptcy.
However, if you do need a bankruptcy, there are many options to consider and many people mistakenly think the chapter 7 is somehow the best kind of bankruptcy to file. This is usually due to lack of information or, more commonly, misinformation.
What you probably (think you) know about bankruptcy typically comes from your friends, family, coworkers and the like. Most of it is secondhand (and sometimes third and fourth hand). We hear about horror stories about people who file bankruptcy and have never been able to recover their finances. They never get credit and end up buying cars at “buy-here pay-here” car lots and having to get loans from cash advance places. But, this is not the way it should be, and certainly not what MY clients experience. When your bankruptcy is done right, it will actually prevent these things from happening.
Chapter 7 bankruptcy is the most frequently filed form of bankruptcy.
But before making a decision to file chapter 7 bankruptcy, Chapter 13 bankruptcy or even not filing bankruptcy at all, you need to know all of your options.
Generally, I find that everyone has at least six different options that they should consider before making a choice about which debt relief option will work best for them. Chapter 7 is a very powerful option, but in many cases chapter 13 is a more powerful option. And, chapter 13 has some additional benefits that are not found chapter 7.
Whether you are looking for Chapter 7 or Chapter 13 or non-bankruptcy option, it makes sense to consult a specialist who certified in all forms of debt relief so that you can compare the pros and cons of each. You need to be sure that you have the right option.
Chapter 7 is a very powerful remedy – but not the only one that should be considered when determining how to fix your financial problems.