Settling Debts Via Chapter 7 Bankruptcy

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Has a lack of income led to you being unable to pay creditors, so you are being bombarded with debt collection phone calls and mail? Did you lose your source of income due to being terminated at work but found a new job recently? Depending on your specific financial situation, you might be a good candidate for filing Chapter 7 bankruptcy. Filing bankruptcy can relieve some of the tension in your life that is related to debt collection agencies constantly trying to get a payment from you. However, you should speak to a lawyer before filing for Chapter 7 bankruptcy so they can provide advice and assistance throughout the process.

There Are Rules to Filing Chapter 7 Bankruptcy

There are rules that must be followed when filing for Chapter 7 bankruptcy, and breaking the rules could lead to fraud. For example, you must disclose all means of income that you are receiving, as well as your valuable assets that are not exempt. Even if you unintentionally exclude income and assets, you can be accused of trying to commit bankruptcy fraud. A lawyer knows all the Chapter 7 bankruptcy rules and what you must do to get approved by a judge. A lawyer can also assess your financial situation via a means test to determine if filing for Chapter 7 bankruptcy is worth pursuing.

Failing to Include Documents Can Lead to a Delay

Do you want to file for Chapter 7 bankruptcy on your own to avoid hiring a lawyer? You have the right to go through the bankruptcy process on your own, but it might be a mistake. You might not include all the documents that are necessary for approval. If you do not include documents, your bankruptcy case can be delayed or denied altogether. A lawyer will make sure there are no delays because they know which documents to file and the deadlines to do so.

Creditors Must Stop Trying to Collect Debts

Once you have successfully filed for Chapter 7 bankruptcy and got approved, there should be a change regarding the behavior of debt collection agencies. The debt collectors should stop contacting you altogether and give you peace of mind. A lawyer is helpful because they can contact all the debt collectors who have been calling you and sending mail to your home. For example, the collectors will be made aware that you are no longer obligated to pay off the debts because the situation was handled in bankruptcy court. If debt collection agencies continue to contact you, a lawyer can assist with taking legal action.

For more information, contact a local lawyer or law firm, like Willis Spangler Starling.