The decision to file bankruptcy is never an easy one but it can be even more overwhelming for someone who is in over their head, who doesn’t know the difference between Chapter 7 or Chapter 13. To figure out whether Chapter 7 bankruptcy may the most appropriate route for you, you’ll need to answer some questions. First of all, you’ll need to identify whether creditors may legally be eligible to garnish your income or take your property if you don’t file bankruptcy.
You might also need to sit down with the actual list of your debts and figure out if filing Chapter 7 will erase enough debt to be worthwhile. Furthermore, if there is property that you intend to keep, you need to understand whether or not you’ll be able to keep all of it in Chapter 7. In answering the first question, you might find that creditors can’t take your property or income, meaning that you are judgment proof. In this case, chapter 7 bankruptcy is not necessary to protect your wages. If your wages can be garnished, however, a creditor can set a judgment to remove non-exempt property, and you may wish to pursue Chapter 7. Certain things are not eligible to be discharged in a Chapter 7 bankruptcy which would make it a poor choice for your financial future. These include debts for luxury items, income taxes, student loans, court-ordered alimony, child support payments and court order payments for death or injury from intoxicated driving. You need to take a look at what kind of property a Chapter 7 bankruptcy may be used to discharge.
Consulting with an experienced bankruptcy attorney is frequently the first step you need to engage in before figuring out whether bankruptcy at all, and whether Chapter 7 in particular, is the right choice for protecting your interests going forward. You need the insight of an attorney who has been practicing in this field for many years to better understand the options available to you. If Chapter 7 is the right choice for you based on your individual situation, your lawyer can help you with the right paperwork to ensure you file in a timely fashion and begin to reap the rewards of the protection.