Bankruptcy isn’t something most people frequently think about, but the reality is that thousands of Americans file for bankruptcy every day. It’s something that can happen to anyone, especially those who have fallen on hard times.
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Chapter 7 bankruptcy Complete Information
Those struggling with bills such as a mortgage or a car loan often have to use the bulk of their paycheck to pay them off. This leaves them relying on a credit card to purchase food and other necessities. With interest rates continually rising, this can lead to an incredible amount of debt.
Thankfully, a Chapter 7 Bankruptcy attorney can lead people through the filing process and help give them the fresh start they need.
1) Understanding Chapter 7
Filing for Chapter 7 bankruptcy offers a clean slate to those who have accumulated a large amount of debt and are unable to pay them back. Showing the court that a person simply cannot pay back the money owed based on their budget, the debts are wiped clean.
While filing for bankruptcy on your own often comes with various associated fees, choosing the right attorney can mean the difference between paying $400 out of your pocket and having to put zero down to get the process started.
2) Zero Down Chapter 7 Filing
There are three qualifications a person must meet in order to file with zero money down.
- A person must have the desire to become debt free. Albeit simple, you would have to show the dedication and desire necessary to actually achieving this goal.
- The person must have an established bank account. This is how the attorney will receive future payments, with auto debit.
- The person must have the ability to make the monthly payments agreed upon by themselves and the attorney.
Zero down simply means that there are no initial fees to start the filing process. Instead, those fees are added to the monthly payments for attorney fees. This is a great option for those who simply do not have enough money laying around to pay the fees.
3) About Attorney Fees
The average base fee in a routine Chapter 7 case is around $1,400. These fees are adjusted in order to meet the client’s needs, and are based on a variety of factors including:
- The total amount of debt that needs to be cleared.
- The type or the types of debt involved such as credit card, student loans, or taxes.
- The amount of assets involved, and what type they are.
- Whether a person owes priority or stale taxes.
- The number of real estate pieces owned.
Thankfully, all of these fees are payed off in monthly installments at a later time with zero down filing. Starting the process costs absolutely nothing.
4) Property Exempt from Sale
While every state has their own laws, there will always be property and income exempt from being sold off under Chapter 7. These can include things like child support income, veterans benefits, social security, or workers compensation. Your attorney will inform you of what exceptions exist in your state.
5) Personal Credit Impact
Filing for Chapter 7 bankruptcy has a long lasting effect on anyone’s credit score. This impact can last up to ten years in some cases, making it incredibly important to discuss with an attorney whether or not bankruptcy is the right choice for someone’s financial situation. Any good attorney’s office will offer free consultations.
6) Filing for Chapter 7
Attempting to file for Chapter 7 bankruptcy on your own comes with the risk of having your petition rejected, as well as the possibility of omitting property exemptions. Having an experienced attorney by your side during the process can help you to clear your debt, giving you the fresh start you need. 🙂