Chapter 7 bankruptcy decisions can remain on your record for years. However, you can console yourself with the knowledge that your bankruptcy lawyer will help set you free from most of your debts within months.
You’ve fallen in a huge financial rut and filing for a Chapter 7 bankruptcy seems to be the only feasible way to get out. This law allows you to sell most, if not all, of your assets to pay your creditors. Before you do, however, you might want to seriously consider the implication of doing so. Yes, filing for bankruptcy may be a good decision, but you first need to consult a Chapter 7 bankruptcy attorney, so you will be guided accordingly.
Why do you need legal help?
If you aren’t careful, a Chapter 7 bankruptcy can bleed you dry financially. Without proper legal advice, you stand to lose properties that you own. Even the beautiful diamond studded golden necklace that was given to you as a gift by your spouse may be declared as a luxury possession, hence subject to garnishment. According to USCourts.gov, a bankruptcy trustee can sell all those properties and distribute the proceeds to your creditors.
What can your attorney do?
Your bankruptcy lawyer can help you in determining which of the properties you possess can be exempt from such sale. He can put forward arguments at the bankruptcy court that might just allow you to keep many of the possessions you hold dear. Obviously, you can’t keep all but still, it’s better than losing everything including properties that have sentimental values.
In some cases, a judge may order, under Chapter 7 bankruptcy, the portion of your salary or wage to be paid to your creditors. It may seem alright if your salary is so huge that you need not worry if an emergency occurs. However, what if your salary is barely enough to cover your daily needs, much less an unexpected emergency situation? Your bankruptcy lawyer can help you explain to the judge and ask that your salary is considered as one of the Chapter 7 exemptions.
Going broke and filing for Chapter 7 bankruptcy is a painful ordeal that must be taken with a grain of salt. Hiring a bankruptcy lawyer could perhaps help stave off some of the harsh legal provisions of Chapter 7 bankruptcy law, and make things a bit easier for you.