Filing for Chapter 7 bankruptcy can seem like a very good idea when things are going really bad. Most people choose this as a last option after their finances take a turn for the worse. Yes, Chapter 7 Bankruptcy Lawyers in Jefferson County MO may be able to help get rid of a majority of your unsecured debt. However, taking advantage of this financial process comes at a price.
Consider Your Credit Gone (Temporarily)
Chapter 7 bankruptcy is a great way for a person to try and salvage whatever amount of finances that they have left. Unfortunately, those who file for bankruptcy will need to prepare to have their credit take a hit. It’s very common for bankruptcy to damage a person’s credit for the future. A Chapter 7 bankruptcy filing could potentially reside on a person’s credit report for as long as a decade.
Some Of Your Property Will Have To Go
Chapter 7 bankruptcy is typically referred to as liquidation bankruptcy because those who qualify will be forced to liquidate a portion of their assets. You’ll have two categories of assets: exempt and nonexempt. Exempt property may involve a person’s personal items, such as clothes and household goods. Nonexempt property typically includes cash, stocks and bonds, funds from your bank account and much more. Talk with a Chapter 7 Bankruptcy Lawyer in Jefferson County MO for more info about what you can and can’t keep.
No More Credit Cards
Those who file for Chapter 7 assume that they’ll be able to keep at least one credit card for emergencies. Unfortunately, doing so just isn’t possible. Why? Remember, your credit will take a huge hit after filing for bankruptcy. Once credit card companies learn about your filing, all of your credit lines will likely be canceled. Thankfully, credit card companies often provide lines of credit to those looking to rebuild their credit after filing for bankruptcy.
Again, a bankruptcy filing will appear on your credit report and will stay there for several years for others to see. The main stipulation of Chapter 7 bankruptcy is that a filer liquidates a portion of their assets to cover their debt. Lastly, even though your credit might be ruined, credit card companies might consider giving you a second chance.
