Pros and Cons of Chapter 7 Bankruptcy

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It’s a position no one ever expects to be in. The thought of looking into your finances and seeing a mountain of debt can be overwhelming. Having to consider filing for bankruptcy can feel hopeless. However, we here at Mountain View Law Group are here to explain more about the chapter 7 bankruptcy option so you can feel more empowered in your decision.

What is Chapter 7 Bankruptcy?
Bankruptcy is a legal process for when a person is unable to repay creditors the debt they owe. Unlike chapter 13, chapter 7 bankruptcy discharges many debts. Types of eligible debt include medical, credit card, and personal loans. Types of debt typically not part of the erasure are IRS and student loans.

The Pros
While it may seem like a dark time for you personally, there are benefits to filing. Here are a few:

  • Reboot. Wiping the debt slate clean can take stress off your shoulders so you can focus on rebuilding.
  • Protection. Once filed, an automatic stay goes into effect, which keeps creditors from collections.
  • Assets. The majority of what you own will stay in your hands.

The Cons
Unfortunately, there is a downside to needing to file for bankruptcy. A chapter 7 bankruptcy lawyer Ogden UT can go over all points with you in more depth, but here are a few:

  • Lose luxury. You can keep a lot, but an item such as a boat will likely be up for liquidation.
  • Salary is too high. There are income limits on who can file, so you may not qualify.
  • Credit report. This type of filing stays on your credit for ten years.

Don’t let the stigma of bankruptcy keep you from doing what is best for you. Even corporations are taking that step. There were one-third more filings this year than the year prior. If this sounds like the direction you need to go in, a chapter 7 bankruptcy attorney Ogden Utah would be glad to help.

The Client Experience

Our clients rave about their experiences with Mountain View Law Group. Check out what they have to say.

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