Don’t let hard financial times ruin your holiday season, here’s how Chapter 7 bankruptcy could help.
With the holiday season quickly approaching, debt can start to build up under the strain of expensive Christmas gifts, ill-judged credit card usage, and more. While the holiday season can be particularly stressful, any time of financial adversity can lead to heightened anxiety.
Yet, if you are an Auburn or Opelika resident overwrought by debt, there are tactics in place for you to gain a second chance. Perhaps the most common type of bankruptcy, known as “liquidation bankruptcy” or Chapter 7, allows you to regain control of your finances by having most of your unsecured debt, including credit card debt, medical bills, and personal loans discharged by a bankruptcy court.
Here is a quick but crucial explanation of Chapter 7 bankruptcy from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama.
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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How Does Chapter 7 Bankruptcy Work?
Unfortunately, while Chapter 7 is an incredible tool, it is not a magic wand that automatically wipes out any debt you may have. Thus, before describing the inner workings of Chapter 7 bankruptcy, it is important to understand exactly which type of debt could be discharged.
Dischargeable debts under Chapter 7 include:
- Credit card balances (including overdue and late fees)
- Medical bills
- Personal and payday loans
- Mortgage or automobile loans for which you are unable to pay
- Utility bills
- Social Security overpayments
- Veterans’ assistance loans and overpayments
Non-dischargeable debts under Chapter 7 include:
- Child support
- Student loans
- HOA fees
- Secured debts
When you file for Chapter 7 bankruptcy, the court immediately places an automatic temporary stay on all current debts and appoints a dedicated bankruptcy trustee to your case. The automatic stay stops creditors from collecting payments, foreclosing on your home, or repossessing property.
The trustee’s job is to oversee every aspect of your Chapter 7 bankruptcy case. Yet, unlike an attorney, they remain neutral for both you and your creditors.
The Importance of a Local Chapter 7 Bankruptcy Attorney
While filing a successful Chapter 7 bankruptcy on your own is possible, it’s not wise in every case. Unfortunately, bankruptcy may seem like a universal and simple process, but most of the time it’s not.
From an immense amount of paperwork to complicated court discussions, there are many parts to a Chapter 7 bankruptcy case that require expertise. Ultimately, by hiring a knowledgeable bankruptcy attorney, your case could be more successful (which means you’re not only able to keep more property but also discharge more debts).
David S. Clark is a dedicated bankruptcy attorney that handles Chapter 7 and Chapter 13 bankruptcy cases. Whether you’re in the Auburn and Opelika area or seeking a local firm that has your best interests at heart, David S. Clark has years of experience helping those in difficult financial times. For more information on Chapter 7 bankruptcy, contact David S. Clark today!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.