Chapter 7 bankruptcy is a legal process that can help you in a lot of ways. Although it can have immediate negative effects on your credit, your credit will improve after filing a bankruptcy since the delinquent accounts, revolving debt, and all other things that were dinging your credit score every month will be gone. Thus, paving the way to having great financial success after declaring bankruptcy.
There are several big differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy that may make Chapter 7 bankruptcy extremely beneficial to you. First, Chapter 7 bankruptcy does not have any debt limits. Also, it does not require you to pay back any of the debts that are discharged. A big part of Chapter 7 bankruptcy is that it will give you a fresh start after you declare it.
There are many types of debt that bankruptcy can discharge. If you have a large amount of credit card debt and high payments, Chapter 7 bankruptcy may be a good option for you. Once declared, your credit card debts will be discharged and you would no longer be responsible for those balances.
Another type of debt that can be dissolved through bankruptcy is medical debt. Medical debts often come about when people are diagnosed with a chronic illness, severe illness, or an unfortunate injury. When these unexpected medical bills come up they can quickly spiral out of control. If this is the case for you and you can’t pay your medical bills, filing for Chapter 7 bankruptcy could be a great option for you since it can discharge medical bills without any limits on the amount.
Lastly, if you’re ever in the unfortunate situation where you are behind on your mortgage payments and foreclosure is imminent, filing for Chapter 7 bankruptcy can help. It can temporarily stop or delay foreclosure giving you time to either catch up on your payments or negotiate with your lender for possible loan modifications.
If you are having financial problems and thinking of declaring bankruptcy, please contact Vokshori Law Group. Our team of experienced attorneys can help you file for bankruptcy and answer any and all questions you may have. If you would like to schedule a free consultation, you can reach us through our website www.voklaw.com or by phone at 213.986.4323.