Can Chapter 7 Bankruptcy Help Me?

It doesn’t take much for a person to go from barely getting by to being buried in debt. If you are in this situation, know that you are not alone. In fact, millions of people in this country carry some amount of debt because of events like job loss, unexpected medical bills, massive student loan obligations and even divorce.

Debt does not go away on its own, and there are some instances when it takes aggressive action to deal with debt. One option is to file for Chapter 7 bankruptcy protection. Below, we examine a few reasons why you might want to consider this option.

You are being harassed by creditors

Creditor harassment can be relentless; it can cause extreme stress and anxiety. You might be scared to answer your phone, embarrassed to go to work and in some cases, scared for your personal safety and freedom. Filing for Chapter 7 bankruptcy will stop creditor harassment.

You have significant dischargeable debt

Not all types of debts are dischargeable in bankruptcy. However, if a significant portion of your debt comes from personal loans, medical bills, credit cards or certain types of personal injury claims, then Chapter 7 bankruptcy can typically free you from these obligations. Understand, though, that you will still be responsible for paying non-dischargeable debts.

You are facing foreclosure on your home

If you are behind on mortgage payments and facing foreclosure, filing for Chapter 7 bankruptcy can help you keep your home. It does this by granting you an automatic stay, which means that your bank (or whoever holds your mortgage) will be at least temporarily stopped from pursuing foreclosure proceedings.

The truth is that Chapter 7 bankruptcy — or even bankruptcy as a whole — may not be right for everyone. However, it can and does help people across the country alleviate the crushing pressure of debt and make a fresh financial start.

To discuss debt relief solutions including bankruptcy, you can consult an attorney who can help you understand your options and make an informed decision about how to move forward.

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