Considering Bankruptcy: The Chapter 7 Option

Posted by Michigan Bankruptcy Law Firm on May 4, 2010 · Leave a Comment

Feeling the weight of the world with more and more bills to pay can be daunting. Chapter 7 bankruptcy is a good way to get a fresh start.

Nearly 2/3 of all personal bankruptcy filings are Chapter 7. This makes it the most common type of bankruptcy. What I will do is define for you exactly what Chapter 7 bankruptcy is and answer 3 of the most common questions asked about it.

Chapter 7 bankruptcy, also known as a straight bankruptcy, is a process where you sell your non-exempt property to help pay debts owed to creditors. It is a liquidation proceeding. Chapter 7 is a quick process that usually takes under 6 months to complete from the time an attorney helps you file. It is a provides the opportunity for a fresh start.

What follows are 3 commonly asked questions about Chapter 7 bankruptcy

1. Do creditors have to leave me alone after I file? In short, yes. Creditors by law are required to stop all actions after you file for Chapter 7 bankruptcy. This is why bankruptcy could be a good way to get yourself a new lease on your financial situation.

2. Will everyone I know find out I went bankrupt? Your bankruptcy filing is a matter of public record. That being said, there is not a strong likelihood that anyone is going to find out unless you tell them. There are so many bankruptcy filings that it isn’t something that typically is publicized.

3. What are the most common reasons that people file for bankruptcy? Unemployment, medical expenses, overextended credit, and divorce to name a few. People often have unexpected, sudden, and large expenses that cause them to fall deeper into debt. Chapter 7 bankruptcy offers them a way to get their heads above water again.

Chapter 7 bankruptcy is not something to take lightly. You will want to further educate yourself about your options and choices. A good step to take is to speak with a Chapter 7 bankruptcy attorney about your issue.

Chapter 7 bankruptcy can be an effective means of eliminating debt. Often times, it can be more effective than debt consolidation. When you are looking for a Michigan bankruptcy chapter 7 attorney, get a free consultation with Michigan bankruptcy chapter 7 attorneys Ardelean and Dunne.