What You Should Know About Chapter 7 Bankruptcy

Making numerous bad financial decisions often leads to a substantial amount of debts accumulating throughout the years. After falling behind on paying debts, you then have to face receiving frequent phone calls and mail in regards to paying creditors back. Getting into a deep financial bind is one of the most stressful situations to be in when you don't bring in enough income to even attempt paying the debts off. Chapter 7 bankruptcy might be the best way to get out of such a bad financial situation so you can start over and make better decisions. Read the remainder of this article to learn about hiring a lawyer and filing for Chapter 7 bankruptcy.

Is Hiring a Bankruptcy Lawyer Necessary?

You are not obligated to hire a lawyer when filing for Chapter 7 bankruptcy. However, due to the nature of filing, it is wise to hire a lawyer to handle the paperwork and other aspects of the process. For instance, you can avoid losing certain assets if there is a lawyer that can communicate with the trustee over your case. A trustee is basically someone who is appointed by a judge to assess your assets, communicate with creditors, and ensure that the case is handled in a way that satisfies all parties as per the state bankruptcy laws. Keep in mind that Chapter 7 bankruptcy must also be approved by a judge, and a lawyer can increase your chance of getting approved.

Will Assets Have to Be Given Up?

You might be obligated to give up certain assets if he trustee desires to sell them in an effort to help your creditors recoup some of the money that you owe. Assets that you need to survive will likely be exempt, as well as other items that you may own. A lawyer will discuss your assets with you when you consult with him or her and can give you a general idea of what to expect. If the trustee attempts reselling any of your assets that are exempt, the lawyer will act accordingly to fix the situation.

Are There Debts That Cannot Be Forgiven?

There are several debt types that cannot be forgiven after filing for Chapter 7 bankruptcy. For instance, certain debts that are owed to the government will still be your responsibility to pay. Court orders that involves child support will also not be covered by filing for bankruptcy. If most of your debts cannot be covered, a lawyer might recommend not filing for bankruptcy.

Contact a firm, like Price James S & Associates, for more help.

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