Chapter 7 Bankruptcy: Whether You Should or Should Not Consider It

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Is Filing Chapter 7 a Good Idea?

Filing for bankruptcy in general is a difficult decision that is not made quickly. There is a lot of thought that goes into making this decision. After deciding that you are going to proceed with a bankruptcy filing, the next question that needs to be answered is what chapter should you file under. A Fort Myers Bankruptcy Attorney could help you in deciding which chapter would best fit your needs.

Chapter 7 bankruptcy is a unique filing. It is different than Chapter 13, because you do not have to file a repayment plan. Chapter 7 allows the bankruptcy trustee to sell all nonexempt assets in order to satisfy the debts owed to creditors. That is why Chapter 7 is commonly referred to as “liquidation.” This means that the debtor will not lose everything. They will be able to maintain the property that is deemed exempt. Fort Myers Bankruptcy Attorneys can help you understand the process of filing under Chapter 7, and whether you should file under it.

Your circumstances as a debtor will shed a lot of light on whether a Chapter 7 filing would be appropriate. There are other Chapters that you can file under that don’t send you down the path of selling off all your items to satisfy creditors. However, the chapter that you can file under is often determined by your financial status. If “your household income exceeds the median income for your geographic region,” then you may not have a choice and you might have to file Chapter 13. This is known as a “means test.”

Fort Myers Bankruptcy Attorneys, especially Florida Bankruptcy, can help you understand the good that can come from filing for Chapter 7 bankruptcy. At times, there are no other options than to file for bankruptcy. There are good things that can come from filing for Chapter 7. Some of the good that can come are things such as, prohibiting creditors from collecting more from you after you have filed, and a financial reset.Fort Myers Bankruptcy Attorneys

Creditors will not be able to collect extra after Chapter 7 bankruptcy has been filed. This will protect you as you seek to move forward and start fresh. A financial reset is very beneficial. Sometimes that is all that one needs to change their financial circumstances for the rest of their lives. A second chance truly is a great benefit that comes from filing for bankruptcy. However, as Fort Myers Bankruptcy Attorneys would tell you, for as many good things that can come from filing for bankruptcy, there are just as many bad things that follow. Below the pros and cons of filing for Chapter 7 bankruptcy will be discussed. As well as, the specific times when filing for Chapter 7 would be a good idea.

Pros and Cons of Filing Chapter 7

Bankruptcy Attorneys in Fort Myers, Florida Bankruptcy, can help you understand the pros and cons that are involved in filing for Chapter 7 bankruptcy. For as many pros that come from filing, there is an equal amount of cons that follow. Some of the cons are as follows:

  • You will lose all of your nonexempt property
  • Filing will ruin your credit score
  • Bankruptcies can last on your credit score from seven to ten years depending on the type of filing
  • It is harder to obtain personal and business loans
  • You still have to pay child support, alimony, and student loans
  • It will leave you with little resources to start fresh

Fort Myers Bankruptcy Attorneys can help you understand the cons that attach to a Chapter 7 filing. Looking at this list may make you think that it is not worth the hassle to file for bankruptcy or it may force you to search for other options. However, there are pros to filing for Chapter 7. Some of these are:

  • Relief from your creditors in the present
  • Relief from creditors trying to collect after you have filed
  • The filing process is relatively short
  • A fresh financial start that can allow you to rebuild
  • You can maintain your exempt property

As you can see, there are many reasons why filing Chapter 7 would be beneficial to those dealing with inability to pay creditors. Sure there are reasons to not file, but there are many reasons to file and start on a new path. Fort Myers Bankruptcy Attorneys can lay out the pros and cons for your specific situation so that the best decision is made.

Why it Would be a Good Idea

After discussing the pros and cons of filing for Chapter 7, now we can discuss why it would be a good idea overall to file. There are many positives and negatives that comes from filing. However, there are times that the choice is taken away from you due to financial circumstances and unforeseen events with creditors and there may not be another viable option. Whether it is a good idea or not, it may be the only option that you have and Fort Myers Bankruptcy Attorneys can help you see that.Fort Myers Bankruptcy Attorney

Filing for Chapter 7 bankruptcy can be a good idea. A lot of the reasons why it is beneficial were discussed above. Debtors will be free from the creditor’s shackles and the creditors will be precluded from collecting after bankruptcy is filed. Ultimately, being free of the financial burdens and debts that you cannot pay makes filing for Chapter 7 a good idea. Florida Bankruptcy can help you see the good that can come from filing for bankruptcy.

Why is it important to use Fort Myers Bankruptcy Attorneys to assist in the process?

Using Fort Myers Bankruptcy Attorneys can be an essential part to you having a smooth experience with the bankruptcy court. These attorneys know how to explain the inner workings of a Chapter 7 filing. They can help you understand the process to alleviate the stress that is involved with such a filing.

Also, they are able to point out the pros and cons for your specific situation. Each situation is different that is why an experienced lawyer can tell you whether to file for bankruptcy or to choose alternative options.

Fort Myers Bankruptcy Attorneys understand what it means to be a counselor and an advocate to a client. These are important in order to give you the most pleasant experience possible based on the circumstances. They know and understand how the bankruptcy court functions and the technicalities around the law. Using their knowledge to assist in the process can save time, and allow you to feel some comfort.

For more information contact Miller, Hollander, & Jeda Attorneys at Law.