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Is Chapter 7 Bankruptcy Right for Me?

chapter 7 bankruptcyIf you are one of the thousands of individuals who are struggling to pay bills every month and have a large amount of debt, bankruptcy may be a viable option. The majority of individuals do not consider bankruptcy as a way to improve their credit ratings and get out of crushing debt, but for many—bankruptcy does exactly this. In fact, in 2010 more than 1.1 million Americans turned to Chapter 7 bankruptcy as a way to eliminate their debt. 

Carrying large amounts of debt and failing to pay bills is already doing damage to your credit scores. While filing Chapter 7 bankruptcy will adversely affect your credit scores at first, getting out of debt and wiping the slate clean may improve your credit ratings in the long-term. Chapter 7 bankruptcy may also be the only option to get you out of the debt that is threatening your financial future.

Chapter 7 bankruptcy is also known as a no asset debt bankruptcy. In order to qualify, your income must fall below the median income for Colorado. If you qualify, you will then need to claim all of your assets. While some of your assets may be exempt from this process, you may have to claim a large portion of them. Your debt will then be discharged and you can begin with a fresh start. 

Chapter 7 bankruptcy isn't for everyone, however, and certain types of debt cannot be discharged. This includes association dues, student loans, car payments, alimony payments, child support payments, and mortgages. It is a good choice for individuals with very few assets but large amounts of credit card debt and other unsecured loans.

If you have assets, such as a house, car, or rental property, Chapter 13 bankruptcy may be a better option for you and your family. An experienced bankruptcy attorney can help you review all of your options and determine which one is best for you. 

When creditors are harassing you and keeping you up at night, it is wise to consult with an experienced Colorado bankruptcy attorney to review all of your financial options. Don't write off bankruptcy as a viable choice until you have discussed the pros and cons with an experienced Boulder bankruptcy lawyer. 

 

Contact Boulder bankruptcy attorneys
Bankruptcy attorneys at Goff & Goff can help you avoid financial ruin and eliminate the stress of large debt. Through Chapter 7 bankruptcy you can regain the financial independence that you've lost, and move towards the future unencumbered by your debt. If you're ready to break free from debt called the Boulder bankruptcy attorneys at Goff & Goff at 303-415-9688 for a free initial consultation.