Understanding Chapter 7 Bankruptcy

The decision to file for Chapter 7 bankruptcy can offer a lifeline to those who are struggling with the pressures of unmanageable payments. While it is helpful, there are many who don’t fully understand what is involved in this process. Chapter 7 bankruptcy is a process where a court wipes away most types of unsecured debt. There are several frequently asked questions and answers to help get a better understanding.

Which Debts Can be Eliminated?

Most unsecured debts like credit card balances, past due utilities and past due rent will be wiped out after filing Chapter 7, there are some exceptions that should be noted. Student loan debt is an example of something that cannot be discharged. Also, money owed to the IRS as well as late payments towards child support will not disappear after filing Chapter 7 bankruptcy.

How Long Does It Take?

Each situation is different, so every bankruptcy is as well. The process length is going to depend on how complicated the financial situation is. Some might take years to resolve but this is rare. In a straightforward case, it can usually be closed within six months of filing.

Can I Splurge Before Filing?

It may be tempting to go on a shopping spree or splurge on a large item thinking that is will not ever have to be paid for. This is never a good idea. The bankruptcy courts will review the prior months purchases preceding the filing. High ticket items will throw up a red flag. It is just as easy for a bankruptcy court to deny a petition as it is to approve it. There is no reason to give them a reason to dismiss the case.

What if I Have Been Served a Foreclosure Notice?

A temporary automatic stay will be initiated on a foreclosure when bankruptcy is filed. This gives some extra time to come up with a game plan to either sell a home or trying to keep it. This is a time when those involved will want to work closely with an attorney to understand all their options in a situation like this.

For those considering bankruptcy, trust South Tulsa Bankruptcy Lawyers to start the process to get a fresh start. Visit http://tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/ for additional information or to schedule a consultation.