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Should I file Chapter 7 Bankruptcy?- Some Key Facts Revealed

If you are under a huge debt, you might be thinking of the best option to come out of the difficult situation as soon as possible. Many people opt for Chapter 7 of bankruptcy because it can erase your debts, long-standing credit card bills, and others. It is always a good idea to contact a reputed Bankruptcy attorney in Las Vegas who can make you understand the entire procedure and file for it on your behalf.

Understanding Chapter 7 Bankruptcy

In this, you will be required to fill out the forms in which you will give details about your earnings, expenses, debts, and what you currently have. You will need to submit the tax returns in bankruptcy court. The trustee will review your forms and call you for a discussion. They will ask you some basic questions about the financial issues that have caused you to take this step.

If you are honest and hold a valid case, you will receive mail from the court that has granted you the bankruptcy discharge. Most people get the approval and eligible debts are erased for them. This type of bankruptcy gives you a sense of relief because you won’t have to make payments towards your credit card bills and loans. 

Common debts erased in Chapter 7 bankruptcies

A few debts that are waived off in this type for bankruptcy are elaborated below:

  • Medical bills
  • Credit card payments
  • Personal and payday loans
  • Car loan deficiencies 
  • Utility bills
  • Judgment from debt collection and credit card agencies

After you file for bankruptcy, the effects are immediate and you will stop getting calls from lending companies. They are also referred to as dischargeable debts.

Debts that cannot be erased under Chapter 7 bankruptcy

A few debts that the debtor has to pay regardless of the financial condition are elaborated below:

  • Current tax debts, penalties, and fines
  • Alimony and child support
  • Student loans

If you have secured debts against property such as a house or a car and you have mortgages against them, you will have to continue paying the loan if you want to own that property. Besides that, you have to be current on all your debts if you want to keep them. 

An attorney is the best person who can give you the right suggestion based on your current financial condition. You should hire the best one in the town.  

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