3 Things to Know about Chapter 7 Bankruptcy
Many Americans are facing financial difficulties due to the current economic recession. However, there are several legal options available to fight for a brighter financial future. If a debtor is unable to pay back their creditors, they may consider Chapter 7 bankruptcy as a way to receive a fresh financial start.
Chapter 7 is not a comprehensive method to get rid of debt, but it is the most powerful solution available to American debtors. If you are frustrated with creditors calling and collection agencies knocking on your door, contact the Birmingham Chapter 7 bankruptcy lawyers of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.
#1: Chapter 7 Bankruptcy Means Liquidation
When a debtor files for Chapter 7 bankruptcy, they resign themselves to a major loss of personal property through liquidation. Liquidation is a major portion of Chapter 7 proceedings. However, there are state and federal exemptions available to help protect many of the most important properties a debtor may hold.
#2: You Have to Qualify
The Bankruptcy Abuse Prevention and Consumer Protection Act has made Chapter 7 bankruptcy significantly more difficult to qualify for than in the past. If your income is too high or if you have not yet tried credit counseling, you may not be allowed to file for Chapter 7 bankruptcy. However, a lawyer may be able to help you find exceptions that apply to your case.
#3: Bankruptcy Can Be Complicated
There are parts of Chapter 7 proceedings that are relatively straightforward. However, much of the legal work that goes into a bankruptcy claim is complex and often challenged by a creditor or second-guessed by a bankruptcy trustee. If you are considering filing by yourself, you may want to call in for a free consultation with a legal advisor first in order to learn how intricate these legal proceedings can be.
If you have been trying to break free from your overwhelming debt but cannot seem to make any headway, you can turn to Greenway Bankruptcy Law, LLC, for your consultation. Let a Birmingham Chapter 7 lawyer assist you today. Contact our offices by calling (205) 324-4000 for more information.