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Chapter 7 Bankruptcy | Fall River

Joseph Botelho | 684 Views | 03/10/2015

Chapter 7

One of the most common questions I am asked: is Chapter 7 bankruptcy right for me? Well, we’ll have to look at your particular situation. First and foremost, can you file Chapter 7 bankruptcy? There are two main reasons why you wouldn’t be able to.

Determining Eligibility

If your household income is above the state median level for allowing Chapter 7 bankruptcy, you may not be able to file, or if you’ve previously filed and received a discharge within the last eight years for Chapter 7, then you will not be able to file another Chapter 7 bankruptcy, again, until eight years have passed since the discharge of your previous bankruptcy.

Unsecured Debts

Next are most of your debts unsecured – such as credit card debts, medical bills, things of that nature? If you have car loans and you’re behind in those payments or you have a mortgage and you’re behind in those payments, you may want to consider a Chapter 13, not a Chapter 7 bankruptcy – what we’re discussing now.

Debt Relief

Also, is your particular situation bad enough where you’re not going to consider any other form of debt relief? Most people’s situation, they have no other option and that’s the reason that they choose bankruptcy, but if you have some other means of getting out of a particular financial situation that you find yourself in, you may want to consider a different avenue, not bankruptcy. But if you do not have any other means of getting yourself out of the situation, obviously, bankruptcy would be the choice for you.

Chapter 7 Drawbacks

If you have bills that you are not being able to meet those obligations and you do not see in the foreseeable future that situation getting better for you, then you’re a prime candidate for a Chapter 7 bankruptcy. Also, you have to accept the drawbacks to a Chapter 7 bankruptcy – the fact that it will be on your credit report for up to (10) years, the fact that your credit will be hurt. Some institutions will not loan to you for a certain amount of time after you’ve been discharged from a Chapter 7 bankruptcy.

Choosing Bankruptcy

So basically, if you’re in a situation where you cannot meet your financial obligations or you’re not being able to move forward – you’re basically using all your money paying the minimums of your credit cards and just barely scraping by – that’s a very good chance that Chapter 7 bankruptcy will be the best option for you.

What you’re not considering at this time is, if you’re just making it by now, what happens when you get into a car accident? What happens when you get sick? What happens when some type of failure happens– maybe you need a new transmission in your car? You’re not thinking about that right now, but if you’re only making it week to week and just barely getting by, the next big thing that’s going to happen in your life is going to force bankruptcy on you and not going to give you an option. It’s better to take control of your financial situation before it takes control of you. Thank you and have a good day.

By: Joseph Botelho

Chapter 7 Bankruptcy | Fall River

Chapter 7

One of the most common questions I am asked: is Chapter 7 bankruptcy right for me? Well, we’ll have to look at your particular situation. First and foremost, can you file Chapter 7 bankruptcy? There are two main reasons why you wouldn’t be able to.

Determining Eligibility

If your household income is above the state median level for allowing Chapter 7 bankruptcy, you may not be able to file, or if you’ve previously filed and received a discharge within the last eight years for Chapter 7, then you will not be able to file another Chapter 7 bankruptcy, again, until eight years have passed since the discharge of your previous bankruptcy.

Unsecured Debts

Next are most of your debts unsecured – such as credit card debts, medical bills, things of that nature? If you have car loans and you’re behind in those payments or you have a mortgage and you’re behind in those payments, you may want to consider a Chapter 13, not a Chapter 7 bankruptcy – what we’re discussing now.

Debt Relief

Also, is your particular situation bad enough where you’re not going to consider any other form of debt relief? Most people’s situation, they have no other option and that’s the reason that they choose bankruptcy, but if you have some other means of getting out of a particular financial situation that you find yourself in, you may want to consider a different avenue, not bankruptcy. But if you do not have any other means of getting yourself out of the situation, obviously, bankruptcy would be the choice for you.

Chapter 7 Drawbacks

If you have bills that you are not being able to meet those obligations and you do not see in the foreseeable future that situation getting better for you, then you’re a prime candidate for a Chapter 7 bankruptcy. Also, you have to accept the drawbacks to a Chapter 7 bankruptcy – the fact that it will be on your credit report for up to (10) years, the fact that your credit will be hurt. Some institutions will not loan to you for a certain amount of time after you’ve been discharged from a Chapter 7 bankruptcy.

Choosing Bankruptcy

So basically, if you’re in a situation where you cannot meet your financial obligations or you’re not being able to move forward – you’re basically using all your money paying the minimums of your credit cards and just barely scraping by – that’s a very good chance that Chapter 7 bankruptcy will be the best option for you.

What you’re not considering at this time is, if you’re just making it by now, what happens when you get into a car accident? What happens when you get sick? What happens when some type of failure happens– maybe you need a new transmission in your car? You’re not thinking about that right now, but if you’re only making it week to week and just barely getting by, the next big thing that’s going to happen in your life is going to force bankruptcy on you and not going to give you an option. It’s better to take control of your financial situation before it takes control of you. Thank you and have a good day.

By: Joseph Botelho