The Four Facts Everyone Should Know About Chapter 7 Bankruptcy

In 2020, 381,217 chapter 7 bankruptcies were filed, making up 70.2% of all bankruptcies filed that year. When deciding to file for chapter 7 bankruptcy, it’s best to enlist the help of a chapter 7 attorney who will guide you through the process.

On your own, you may miss debt categories that could be eliminated, or you may have errors in your filing that cause your application to be rejected. To locate a bankruptcy filing, you can create a PACER account and perform a bankruptcy chapter 7 case number search to let you know in which federal court a case was filed.
The bankruptcy law definition indicates that it is a legal procedure that seeks the help of the court to erase most of their debt. Both individuals and businesses that are unable to pay their debts can apply for bankruptcy.
However, not all debts can be erased. Chapter 7 and student loans are not eligible. Neither are back taxes, alimony, child support, and court judgments. You can also check bankruptcy filings using a Multi-Court Voice Case Information System (McVCIS) though that can be cumbersome.

Chapter 7 bankruptcy

Many people who have gotten into overwhelming, unmanageable debt end up filing a Chapter 7 bankruptcy as a means to finding a new start with their finances. In fact, approximately 729,000 people filed for bankruptcy with the help of a Chapter 7 bankruptcy attorney in 2013.

And if you’re thinking about when to file bankruptcy, it’s essential that you do your research and know all the realities — both good and bad — of filing a Chapter 7 bankruptcy.

Before you make the decision to file a Chapter 7 bankruptcy, you should know these four facts:

1. A Chapter 7 bankruptcy is a big decision: There are some long-lasting consequences of filing for a Chapter 7 bankruptcy. A bankruptcy stays on your credit record for years after you file it, which can make it tough to get approved for loans. However, by consistently making on-time payments for your bills, you can quickly build up your credit score again.

2. Chapter 7 bankruptcy will require you to give up some things: Ask any Chapter 7 bankruptcy attorney, and he or she will tell you that Chapter 7 bankruptcy requires the filer to give up some of their material assets during the debt liquidation. However, federal law allows you to keep your house and your car along with some other necessary possessions.

3. It’s possible to get help with your bankruptcy: Whether it’s financial help or help in the form of advice, you do have resources for help with filing bankruptcy. There are a number of free legal clinics that offer advice and bankruptcy help, and you may even qualify for legal representation from a pro bono attorney who doesn’t charge any legal fees.

4. You shouldn’t go without an attorney: Many people think filing for bankruptcy without a Chapter 7 bankruptcy attorney will save them thousands on attorneys’ fees. And while this is technically true, the probability that your bankruptcy will be rejected due to a filing error increases significantly when you forgo the help of a Chapter 7 bankruptcy attorney. To make sure your bankruptcy is approved, you should always hire an attorney. To see more, read this.

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