Before filing for bankruptcy, it’s wise to review your bankruptcy options and choose the one that makes the most financial sense. If you’re debating filing for a Chapter 7 bankruptcy, you can determine if it’s the right choice for you by asking yourself a few preliminary questions. In this blog, our Rancho Cucamonga bankruptcy attorney explains factors to consider before deciding to file a Chapter 7 bankruptcy.
Will Chapter 7 bankruptcy discharge enough of your debts?
There are certain types and categories of debts that cannot be cleared under a Chapter 7 bankruptcy. If your main goal in filing for bankruptcy is to eliminate the debts that cannot be eliminated under this specific type of bankruptcy, it doesn’t make sense to move forward with a Chapter 7 bankruptcy.
Nondischargeable debts in a Chapter 7 bankruptcy can include:
- Child support and alimony
- Income taxes less than three years past due
- Court judgments
How much property will you have to give up?
In any bankruptcy, there is property that is exempt (property you get to keep) and nonexempt (property that can be taken). Nonexempt property is used to pay your creditors, and while the type of property you are allowed to keep varies, it usually includes reasonably needed household furnishings, appliances, and pensions. Nonexempt property typically consists of family heirlooms, stocks and bonds, and other investments.
Is it more than you need?
Some people may be considering bankruptcy to put an end to harassing phone calls by creditors. In most cases, however, you can stop these phone calls by simply letting the creditors know. Under the federal Fair Debt Collection Practices Act, collectors cannot call you at an unreasonable time, nor can they harass you or use abusive language.
Our Rancho Cucamonga bankruptcy attorney understands the importance of personal service and reliability. Let us guide you towards financial freedom! Call (909) 328-6280 to schedule a free and confidential consultation.