Chapter 7 Bankruptcy Requirements

Problems with the economy have effected businesses and individuals across the nation. Many of those feeling the strain of tough finances don’t wish to make their troubles known to friends and family which can create additional stress. Many people interpret Chapter 7 Bankruptcy as a negative, but in fact it can be a huge positive to your well-being. Filing Chapter 7 can lift unwanted debt and create a “fresh start”. However, there are several requirements to bankruptcy that all interested individuals should be aware of. This blog will help you get a footing on starting the Chapter 7 Bankruptcy process.

  1. Understand the available types of bankruptcy. There is Chapter 7 and Chapter 13. Chapter 7 is the specialty of Patel Law Firm. Chapter 7 discharges all consumer debts and sometimes requires valuable assets to be forfeited although many time this can be completely avoided. Chapter 13 places an individual on a strict payment schedule until all debts have been repaid.
  2. Decide which plan is best for you. Patel Law Firm seeks to improve the lives of its clients by utilizing Chapter 7 Bankruptcy to discharge debts while formulating a strategy to keep valuable assets.
  3. credit counseling is a mandatory regulation. During the filing process, an individual is required to take both a “pre” and “post” credit counseling course. These courses are offered at specific venues across the state but are typically done using an online system.
  4. Understand not every debt can be discharged. Although the large majority of consumer debts can be discharged through Chapter 7, there are certain debts in specific categories which cannot. Some good examples of these are student loans, alimony payments or back-owed taxes.
  5. Rebuilding credit is completely possible. Bankruptcy is not a financial funeral but can actually be used as an opportunity for a fresh start. Although an individual’s credit score is affected at first, with a well-advised financial strategy, rebuilding credit can certainly be accomplished. Patel Law Firm can advise you on how best to re-build credit in a way that works comfortably in your own personal situation. Some of these steps could be acquieing new credit cards or establishing on-time payment for future major purchases.

Struggling financially is a difficulty being faced by millions. Being well-informed about Chapter 7 bankruptcy can help you make a well-informed decision that could help your long term financial future. Patel Law Firm is here to help in researching and declaring Chapter 7 bankruptcy call or email your questions right away!

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  1. […] Chapter 7 in modern day America is still a serious matter, but it should be viewed as a valuable financial tool in times of overwhelming or unmanageable debt. There are intricate laws protecting those declaring bankruptcy and the whole process could be described as uneventful. Feel free to read more about chapter 7 bankruptcy here. […]

  2. […] bankruptcy attorney Beeraj Patel practices Chapter 7 bankruptcy with years of experience working within the Eastern District of Virginia. The Eastern District of […]