Filing for bankruptcy may be more common than you think. Between October 2005 and September 2017, around 12.8 million consumer bankruptcy petitions were filed in the federal courts. Bankruptcy is a helpful tool for millions of people, not just in America, but in other countries that have similar protections in place. You may be wondering about whether filing for chapter 7 bankruptcy is a good move for you. If so, you may want to begin looking for chapter 7 attorneys. Before you make a final decision, you have to carefully consider some of the benefits.
Stretch Out Your Debt Payments
Debt can be like carrying around an awkward, heavy weight for years and years. The burden of debt is made far worse when you are being obligated to pay it back sooner rather than later. Also, the sooner debt is owed, the more the payments tend to be. If you file for chapter 7 bankruptcy, you can stretch out your debt payments. A chapter 7 attorney would be the best person to consult with in order to get all of the details, but here are the basics.
With chapter 7, you are able to mitigate the amount you owe your creditors. You then may have the option to pay back the debt that the creditors say you must pay under chapter 7 over a longer period of time. For instance, let’s say you still owe a few hundred dollars for a bunch of things you bought using a line of credit with a set payback date. The amount you have to pay back is too much, and the monthly payments are simply not manageable. Under chapter 7, you can possibly only have to pay back some of the money you owe the credit-providing company. You also may be able to decide on a future date to pay everything back. That future date could be farther away than the payback date you were previously given. Now, your monthly payments can be lower and/or you may have more time to pay back the debt.
The Amount You Pay Can Be Reduced
Limiting the amount you have to pay back the companies to which you owe money may be one of the most popular benefits of a chapter 7 filing. Bankruptcy attorneys in Atlanta can provide you with counsel regarding how this can benefit you with your current debt obligations. Bankruptcy lawyers have access to accurate information, and they can use it to make sure you get the maximum protection from a chapter 7 filing. The reason companies are OK with you not paying back everything you owe them is because, for them, it’s better than getting nothing. In many cases, there is no reasonable recourse for the company other than filing a report that affects the credit of the person to whom they gave the money. While this is certainly a strong deterrent for people who may be considering defaulting on a loan, it doesn’t help the company recoup its money. However, with a chapter 7 filing, the company is able to at least get some of the money owed them. The benefits on the other side of the table are obvious: you don’t have to pay as much money back. This means you can use the money you do have to pay for other necessities in life.
Is Filing for Chapter 7 Bankruptcy the End of My Financial Life
Chapter 7 is by no means the end. If anything, it is a new beginning. A consultation with a chapter 7 attorney can be the first step you take to rebuilding your credit and getting back into a financially strong position. Filing for chapter 7 enables you to pay back the money you owe while also making the payment process as easy on you as possible. The amount of money you need on a day-to-day basis is a consideration in the process, too, so you will be in a better position to live a normal life and get rid of the crushing influence of debt. Bankruptcy lawyers know the ins and outs of the law, and they can give you a leg up on the process.
The first step would be to contact a chapter 7 attorney. He or she can guide you back to financial freedom.