The Effects Of A Chapter 7 Bankruptcy Case
Are you considering seeking help for your debt load? If so, you might want to consider Chapter 7 bankruptcy if you qualify for it. To qualify, you must earn less money than the average income earner in your state and meet a couple of other factors. If you qualify and decide to use it, you will see some effects from filing your case almost instantly. Here are some of the key results you might see if you use Chapter 7 bankruptcy.
Your Phone Stops Ringing
After you file your case, you will notice that your phone stops ringing within a few days. This occurs from the automatic stay the court issues. This stay is a court order to your creditors that tells them to stop contacting you. If you are tired of all the harassment through phone calls and letters, you will like this part of a Chapter 7 bankruptcy case.
You Can Stop Paying Some Bills
The second effect of filing for Chapter 7 is that you can stop paying some of your bills. Your bankruptcy lawyer will explain which debts to continue paying and which to stop. For example, if you own a house that you want to keep, you must continue paying for it. If you have credit cards that fall into the qualifying category of discharge, you can stop paying those.
You Instantly Have More Money in Your Pocket
The purpose of a Chapter 7 case is to help you eliminate some of your debts. Therefore, after filing your case, you will likely have more cash in your pocket because you will stop paying some of your debts. This leaves you with more money to use for other things.
You Will Learn How to Budget and Save Money
When you use Chapter 7, the court usually requires that you complete two credit counseling courses. The effect of this is that you will learn better money-management skills. You will learn how to save money, budget, and much more.
You Must Go to Court
The last effect of a Chapter 7 case is going to court. You will have at least one court hearing to attend for your bankruptcy case, and your lawyer will attend the meeting with you.
These are the effects of a Chapter 7 bankruptcy case. If you would like to learn more about how Chapter 7 might affect you, contact a bankruptcy law firm today.