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                               A GUIDE TO CHAPTER 7 BANKRUPTCY  
          Bankruptcy is a legally declared inability of individuals or businesses to discharge their debts. A declared state of bankruptcy can be requested not only by creditors in an effort to get what they are owed but also by the insolvent individual or organization. If it is difficult to repay debts, declaring the bankruptcy may be the right solution to debt problems.
Out of six basic types of under the Bankruptcy Code, Chapter 7 is a “liquidation” of nonexempt assets to pay debts. In a court-supervised procedure, a court appoints a trustee who liquidates the non-exempt assets of the debtor’s estate and makes distributions to creditors. The Bankruptcy Code allows the debtor to keep certain exempt property; but a trustee will liquidate the debtor's remaining assets. 
          According to the amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, if a debtor’s income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief. Filing a petition under chapter 7, automatically stays most collection actions against the debtor or the debtor's property, but potential debtors should realize that the filing of a petition under chapter 7 might result in the loss of property.
After Chapter 7 bankruptcy, one will not longer owe money on credit cards, unsecured loans, unpaid hospital, medical and utility bills and unpaid rent. But debts like state and federal taxes (unless they are more than three years old), child support required by law; alimony, government-backed student loans, debts due to fraud, fines, penalties and debts due to willful injury to another person or property are not eliminated by Chapter 7 bankruptcy.
          Just a few months after the petition is filed, in most chapter 7 cases, the individual debtor receives a discharge that releases debtor from personal liability for certain dischargeable debts. Thus, chapter 7 Bankruptcy is designed to give the debtor a new start and a chance to live with sound financial management.
Call Jamaal today to assist with filing Chapter 7 Bankruptcy. (901) 295-4529

Advantages of Bankruptcy

8/21/2019

26 Comments

 
​Consumers who are considering filing bankruptcy are faced with a lot of questions and are often not sure what the advantages could be- if any. Besides the obvious advantage of not having the debt that hangs over their head everyday, are their any other advantages of potentially damaging your credit report for 7 to 10 years by filing bankruptcy?

There are many different aspects to consider before making a final decision. There are always options, but choosing the right option is not always easy. Below are some of the advantages that can help the consumer make thought-consuming decisions that are right for them. The advantages are not always the deciding factor but they can sure help you make a wise decision.

 The Automatic Stay 

One advantage is when the consumer files for Chapter 7 or Chapter 13 bankruptcy, a petition is filed and there is  what is called an automatic stay, which requires the creditors by law to cease all activities of collecting the debt. This means that they have to stop calling, leaving messages, or mailing you notices when they are notified of your intentions. Creditors can be penalized by the court system if their efforts continue. This type of situation is best handled by an attorney. Bankruptcy Attorneys are available for a free consultation to answer any and all questions that you may have. They will help you see the advantages that can be offered by Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy has it’s own set of advantages and disadvantages.

 A Fresh Start 

The advantage of obtaining a fresh financial start is another major benefit that a consumer should consider when deciding if filing a Chapter 7 is the best choice for them. Chapter 7 bankruptcy is a better option for debtors who have little or no property and mostly unsecured debts. You can choose what debts you wish to file Chapter 7 bankruptcy. This includes both secured and unsecured debts. Unsecured debts are those like medical bills and credit cards. A secured debt is when you have decided to use collateral that can include your home, car, or other major assets you have ownership of. Chapter 7 bankruptcy is also referred to as liquidation. 

 Possible Disadvantages 

Chapter 7 is not a perfect solution, however, as there are some unsecured debts that do not qualify for Chapter 7 bankruptcy- including most school loans.   Please ask questions of your bankruptcy lawyers. Consumers who are eligible for Chapter 7 bankruptcy may be discharged or forgiven from most unsecured debts. With a secured debt the creditor is entitled to collect the debt by seizing and selling certain assets of the debtor if payments are missed.  

 Chapter 13 

Chapter 13 bankruptcy provides a better solution for those consumers who have a regular income, secured debts and do not which to loose their property. Chapter 13 bankruptcy allows the consumer to submit a plan, to the bankruptcy court to repay the debts that are secured in a three to five year period of time.  This means the consumer does not have to lose ownership of the items used to secure the debt. Each individual’s situation is different though, and must be evaluated before deciding which type of bankruptcy is right for their particular situation.

 Learning Opportunities 

When a consumer decides to file for bankruptcy, whether it is Chapter 7 or Chapter 13, the consumer is required to take some classes. The consumer is required to attend classes pertaining to credit counseling and debtor education. This is an advantage that not only helps you figure what had went wrong, but it will also help you find new ways of budgeting, paying bills, and spending your funds so that you do not run into the same financial difficulty in the future. The classes also teach you how to protect yourself against identity theft and also how to read and monitor your credit report.

 Employment After Bankruptcy 

Consumers that are concerned about being dismissed from a job due to the fact that they are filing bankruptcy should not be worried. Another advantage is that employers are not allowed to dismiss an employee based upon the fact that they, the employee, are filing bankruptcy.  Keep in mind, however, that it may affect your ability to obtain new employment for a few years after filing bankruptcy.


26 Comments
Jane Burt link
9/13/2019 02:30:40 pm

Thank you for explaining how filing for bankruptcy can help to grant you a stay which means that you won't get harassed by creditors. My sister is in a lot of debt and is constantly being harassed to pay it back and she is needing help. I will suggest that she hire a bankruptcy attorney to help her file for bankruptcy.

Reply
Alec Burns link
1/7/2020 10:15:14 am

It's good that you point out that filing for bankruptcy can give a person a fresh financial start. I have been having a hard time meeting my financial obligations, and I am considering consulting with a bankruptcy lawyer. I'm going to look for a good bankruptcy lawyer in my area.

Reply
Vivian Black link
1/9/2020 05:13:50 pm

I love how you talked about a fresh start and how bankruptcy can be a benefit because you will have a fresh financial start. My cousin is looking to file for bankruptcy because she needs a reset more than anything right now. She will keep these tips in mind as she searches for a professional bankruptcy lawyer that can help her.

Reply
David Johnson link
1/14/2020 05:32:57 pm

I hadn't heard of the automatic stay, which means that your creditors will stop collecting debt for a bit. My brother is in bad financial straights since his business went under. He'll have to file for bankruptcy.

Reply
Jenna Hunter link
2/3/2020 07:41:14 pm

My uncle is thinking about filing for Chapter 7 Bankruptcy because he is having a really hard time bringing money in on his own since his wife can't find a job. It could be really useful for them to work with a professional and find the best plan for them. It was interesting to learn about how he can be forgiven of unsecured debts and can liquidate his properties.

Reply
gainesville bankruptcy lawyer link
7/30/2020 03:27:58 am

Great Post about bankruptcy lawyer.

Reply
rachel frampton link
8/27/2020 03:02:06 am

My dad can longer pay for his mortgage anymore, and he also has a lot of debts to settle, which is why he's thinking of filing for bankruptcy. Thank you for this; we'll keep in mind to seek a free consultation with the prospective attorney so we may ask about the advantage of Chapter 7 and 13. I'll also keep in mind to inform my dad about the importance of studying about credit counseling.

Reply
Fred Gibbons link
9/16/2020 01:06:46 pm

It's interesting that this article points out that bankruptcy can be a useful option for people who are overwhelmed by the collective efforts of their creditors. I have more debt than I can possibly pay, so I'm considering speaking to an attorney who can help me file for bankruptcy. I'm going to look for a reputable bankruptcy attorney in the area that I can use.

Reply
Zachary Tomlinson link
9/22/2020 07:25:33 pm

One of my close friends lost his main source of income because the company he's working with decided to close down. It's amazing how a bankruptcy attorney could help someone start again since they can ease a person's financial burden. I should recommend that he consult one of these experts as soon as he can.

Reply
Adam Golightly link
9/23/2020 05:57:15 pm

I liked what you said about how situations can be handled by an attorney if creditors leave messages, mail notices, or mail notices by a bankruptcy. My uncle is having a lot of problems with his financials and he wants to make sure that he can feed his kids. He would really like to get some help from a professional so that the system can work a lot more efficiently because they know how it works.

Reply
Bob Newton link
11/4/2020 03:07:28 pm

Thank you for elaborating on how filing for bankruptcy can help you get a fresh financial start. My wife and I currently have an overwhelming amount of debt, so I'm thinking about speaking to a bankruptcy attorney. I'm going to see if there's a reputable attorney in our area that can help us file for bankruptcy.

Reply
Taylor Hicken link
11/26/2020 12:31:32 am

I appreciated it when you shared that a person will be getting a fresh financial start when he or she files for Chapter 7 bankruptcy. A friend of mine just told me the other day that he is going through a tough time since he has a number of accumulated debts that he could not settle as he just lost his job a few months ago due to the recession. I will suggest him to file for Chapter 7 bankruptcy by hiring a reliable lawyer to help him with the process.

Reply
Jonathan Hansen link
12/8/2020 01:52:20 pm

It's valuable that you highlight the fact that filing for bankruptcy can help give you relief from your creditors. I have been getting overwhelmed with calls from debt collectors for the past few months, so I'm considering hiring a bankruptcy lawyer. I'm going to look for a reputable bankruptcy attorney in my area that I can use.

Reply
Rebecca Gardner link
1/11/2021 01:31:02 pm

I'm glad you mentioned that Chapter 7 bankruptcy requires all creditors to stop debt-collecting activities right away. My sister lost her job about 8 months ago and is constantly getting calls because she can't pay her credit card bills. Maybe I'll give her a call and encourage her to meet with a lawyer to see if Chapter 7 bankruptcy could be a good option for her.

Reply
Nelson Fogerty link
1/21/2021 01:32:19 pm

It's interesting that you point out that filing for bankruptcy can help you get a fresh financial start in life. My wife and I have been getting overwhelmed by calls from creditors, so we are thinking about contacting a bankruptcy attorney. I'm going to see if there's a good attorney in our area that can help us file for bankruptcy.

Reply
Kristofer Van Wagner link
1/21/2021 08:28:27 pm

Thank you for pointing out that it is important for us to get an experienced bankruptcy attorney help us in filling up our form in the event we face bankruptcy. My uncle needs to be declared bankrupt. I will recommend him to hire an attorney.

Reply
Conrad O'Connor link
2/5/2021 02:03:43 pm

It's wonderful that you point out that you can start over financially by filing for bankruptcy. My wife and I have been getting overwhelmed by our debts for the past few months, so we are thinking about speaking to a bankruptcy lawyer. I'm going to look for a good bankruptcy attorney in our area that we can use.

Reply
Eli Richardson link
2/9/2021 01:11:46 pm

I'm glad you talked about how declaring bankruptcy could be a good option for someone who doesn't have properties. The other day, I ran into an old friend, and he mentioned he was going through a rough patch. He's got big debts, and he doesn't know what else to do. I'm worried about his well-being, so I'm researching what could be done. That's why I believe this could be the answer to his problem. I'm grateful for helping me learn about the benefits of declaring bankruptcy aided by a professional attorney.

Reply
Chris Pederson link
2/24/2021 02:04:59 pm

Thanks for sharing how debtors who don't have a lot of property might actually be better off with Chapter 7 bankruptcy. My cousin was telling me how is in a ton of debt. He might have to file for bankruptcy so maybe this could help him out.

Reply
Erika Brady link
3/23/2021 03:47:09 pm

It's great that this article explains that an attorney can help call off creditors so you won't have to worry about them mailing, calling, or sending other messages to you. If someone is facing a problem with creditors, maybe it would be good to research a bankruptcy attorney as soon as possible. Going online to read reviews would be a great way to learn about their education and knowledge as well as the type of cases they have worked on in the past.

Reply
Martin V. Vick link
7/16/2021 08:15:09 pm

Your article is very nice. You have provided interesting information. I will return to your site often to check. Keep up with your good work.

Reply
Douglas D. Moore link
7/17/2021 11:12:02 pm

Good blog post !! Your work was very impressive; I really appreciate the research part of it which made your article very rich and understandable. Overall you have done a great work.

Reply
Thomson Smith link
9/3/2021 11:39:04 am

It's great that you mention that filing for bankruptcy can help you get a fresh start financially. My wife and I have an overwhelming amount of debt, so we're considering speaking to a bankruptcy attorney this month. I'm going to look for a reputable bankruptcy in the area that we can use.

Reply
Hailey Miller link
9/14/2021 11:10:41 pm

Thanks for pointing out that filing Chapter 7 bankruptcy is a better option for debtors who have little or no property. I would imagine that any business owner who would like to file for bankruptcy would need the help of a reliable lawyer. I think they should consider getting an expert who can guide them from start to finish so they can maintain their secured assets.

Reply
Tex Hooper link
10/20/2021 07:00:59 pm

I like your bankruptcy tips. I need to declare bankruptcy. I'll have to hire a lawyer.

Reply
Mia Evans link
1/10/2022 09:16:11 pm

Thanks for pointing out that it would be best to ask a lawyer to know if you are eligible and would be forgiven from your unsecured debts. With that in mind, my sister should look for a law firm with reliable bankruptcy lawyers to help her out. It's because she is not able to pay some of her loans at the moment due to emergency medical expenses she has after her husband had an illness.

Reply



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    Jamaal M. Walker is a debt relief attorney licensed to practice in Arkansas, Mississippi, and Tennessee.

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