Knowing when to file bankruptcy can be tricky. When facing bankruptcy, a debtor may feel isolated and alone, but the important thing to remember is that they most certainly are not! In 2013 alone, there were 333,626 Chapter 13 bankruptcies filed and 728,833 Chapter 7 bankruptcies filed in the U.S.
What, exactly, happens during Chapter 7 bankruptcy? Chapter 7 bankruptcy is often referred to as Liquidation, and allows the sale of the debtor’s assets so that the cash may be distributed to the creditors, instead of arranging a repayment plan, as in Chapter 13 bankruptcy. Depending on the laws in the state where the debtor lives, he or she may be able to keep certain personal items or even real estate. A reputable Chapter 7 bankruptcy attorney will be able to explain whether this is the case or not, as well as advise the debtor how to file for bankruptcy. Once the petition is filed under Chapter 7 bankruptcy, most collection actions (including lawsuits and wage garnishments) against the debtor are stopped.
Filing for bankruptcy is never an easy decision to make, and it can be a long process. Fortunately, with the assistance of your local bankruptcy attorney, it does not have to be unpleasant. Finding an attorney for bankruptcy help is the best way to learn what your options are, and which best fits your needs. Two of the most common options are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Here are some Frequently Asked Questions to review before you meet with your attorney.
More than six years after filing for bankruptcy help with a Chapter 11 bankruptcy attorney, New York Jets backup quarterback Michael Vick is mere weeks away from completing repayments on the $18 million in debts he owed to creditors. According to a December 17 New York Post article, Vick filed Chapter 11 bankruptcy for individuals in July 2008, before being sent to prison for his involvement in a dog-fighting ring. From 2010 to 2014, Vick has been on a restrictive budget of $300,000 per year in order to make payments to his creditors — during this period, he earned more than $49 million.
Whether you just completed your journey along the Chapter 7 bankruptcy timeline or you’re just now getting in touch with a Chapter 7 bankruptcy attorney to start your bankruptcy filing, opening up a new credit card is probably the last thing on your mind — because credit card debt was likely one of the things that led to you filing bankruptcy. However, one of the most well-known Chapter 7 bankruptcy facts is that it stays on the filer’s credit record for 10 years after the filing, and can have a devastating impact on your credit score and ability to get approved for financing and loans later on. In fact, a December 9 Investopedia article reports that the average bankruptcy filer’s credit score falls to the mid-500s.