Chapter 7 bankruptcy offers an effective solution to the pressures that come with out of control debt. Filing for bankruptcy isn’t necessarily a bad thing. The process is often misunderstood and inaccurately stigmatized. Those that are considering their options can turn to a Cheap Bankruptcy Attorney In Puyallup Wa. Here are some reasons why filing can be a positive step, allowing a person to reclaim control over their financial situation.
Chapter 7 bankruptcy is a debt elimination program, unlike Chapter 13. When a person files, all of their qualified unsecured debts are wiped away by the bankruptcy courts. This leaves one with a clean slate for a fresh start. Since there is no debt weighing a person down after this, they have the opportunity to rebuild their finances and make careful and informed decisions about managing their money.
Still Secure a Loan
One of the misconceptions about Chapter 7 bankruptcy is that a person will not be able to get approved for a loan, any new lines of credit, or even rental homes. This isn’t the case. While the bankruptcy will appear on a credit report for 10 years, and the credit score will take a hit initially, that doesn’t mean the applicant will automatically be disqualified from obtaining loans or housing. It is a good idea to discuss the situation with a potential lender, or in the case of renting a house, additional security deposit might be required. Either way, a person will more than likely still be able to benefit from these services.
Learn Financial Skills
Properly managing money doesn’t come naturally to most people. Many have to be educated and then have some practice to get it right. As part of Chapter 7 discharge, a person is required to successfully complete a credit counseling course. This will give them a chance to look back and determine what went wrong and learn better ways of handling money moving forward. This is a great way to improve practical skills like planning and keeping within a budget, staying on top of payments, as well as planning for the future.
With all of that being said, Chapter 7 isn’t a bad thing. For most people, it’s quite the contrary. Contact Rafal Gorski, Attorney at Law to start exploring Chapter 7 for yourself. He is a Cheap Bankruptcy Attorney In Puyallup Wa, and offers a free initial consultation.