4 Things To Find Out Before Using Chapter 7 Bankruptcy
Are you at your wit's end with your debts? If you cannot pay all your bills each month and if they keep increasing, you probably need help. Bankruptcy is one option to consider, and you can learn more about it by meeting with a bankruptcy lawyer. Here are four things you should find out during your meeting before you file for Chapter 7 bankruptcy.
What Debts Will It Discharge?
The advantage of Chapter 7 bankruptcy is that it offers forgiveness of qualifying debts. Forgiveness is a discharge of debts, meaning you no longer legally owe them. When filing for Chapter 7, you should find out which debts qualify. Chapter 7 would offer no help to you if you did not have any qualifying debts. Therefore, ask your lawyer before you file. Your lawyer can tell you precisely how filing will affect your debts, including which debts fall into the qualifying debt classification.
What Happens to Your House?
You may also wonder what will happen to your home if you file for Chapter 7. Two potential results could occur. First, you may lose your home. People who file Chapter 7 take this risk; however, you will only lose your home if you have a lot of equity in the property or are behind on payments. The second potential result is that you can keep the house. You must be current on payments to keep your home, and you must meet the requirement for equity.
How Long Will It Take?
The third question to ask your lawyer is how long the case will take from start to finish. Most Chapter 7 cases move quickly and are complete in less than six to eight months. If you have challenges in your case, it may take slightly longer to complete.
How Much Will It Cost?
The fourth question to ask is about the costs. Most bankruptcy lawyers require full payment before filing cases. The costs might be $1,000 or more. This amount may seem like a lot, but if you receive a large discharge on your case, it is worthwhile. You should weigh the pros and cons of filing before you file to ensure that this is the right option for your situation.
Finding out these four things can help you make an informed decision about Chapter 7 bankruptcy. Are you interested in finding out the answers to these questions? If so, talk to a local bankruptcy lawyer at a law firm like the Martinez Law Firm today.