chapter 7 bankruptcy in Prattville, AL can provide relief when there is no way to pay off existing debts. When all avenues have been exhausted, bankruptcy provides the legal means for debt to be permanently discharged. Seeking relief through Chapter 7 bankruptcy should be the last resort since it can have long-lasting consequences. If one chooses this path, there are several things to consider before doing so.
About Chapter 7
There are several types of bankruptcy protection that an individual or corporation can choose from when trying to deal with debts. Chapter 7 bankruptcy is the most common path taken by individuals who do not have the resources to make payments over a three to five year period while being supervised by the court. When Chapter 7 is filed, a court-appointed trustee will take and sell any assets that aren’t protected by the process to pay creditors. However, in most instances, an individual will be allowed to retain possession of a home, car, and personal items.
When the decision has been made to file for chapter 7 bankruptcy in Prattville, AL, a list should be created of everything the individual owns as well as all of the bills and debt that need to be included in the case. Items that aren’t addressed in the final paperwork may not be eligible for dismissal. The court will designate an appointee to sell any non-exempt assets listed, and the rest of the debt will be discharged by the court.
The Pros and Cons of Bankruptcy
Chapter 7 bankruptcy can remain on one’s credit record for 10 years, which may make it difficult for an individual to obtain a loan or secure a lease for housing. It can also be a negative factor when applying for a job. On the upside, once a bankruptcy case has been initiated, creditors can no longer harass, threaten, or seek payment for any of the debts included in the filing.
When an individual seeks relief through bankruptcy, the outcome can be a fresh start in life. Bankruptcy provides a legal way of getting back on track. Please browse the website for more information regarding the bankruptcy process.