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Filing for Chapter 7 bankruptcy in Raleigh can be a tough decision. When it comes to life-changing decisions like this, it is always best to take an honest look at what you are facing. This way, you are fully prepared for what is coming. Here is a closer look at what is in store for you if you decide to file for Chapter 7.
Credit Record
- Con: Filing for Chapter 7 can stay on your credit record for as long as ten years.
- Pro: Completing a Chapter 7 bankruptcy process usually only takes a few months. While this fact does stay on your credit record, choosing not to file can hurt it as well. A future lender may be more understanding of your bankruptcy history than a current standing filled with defaults, missed debt payments, lawsuits, and repossessions.
Property/Possessions
- Con: You will most likely have to give up some important property, especially your luxury items.
- Pro: Under particular state exemptions, a good deal of your possessions may be exempt from bankruptcy. More importantly, you will be able to keep the property you buy after filing for Chapter 7.
Credit Cards
- Con: You will not be able to keep the credit cards you already have.
- Pros: Within one to three years of filing for a Chapter 7, you may already be able to get new lines of credit.
Mortgage
- Con: Getting a mortgage on your own can be very difficult after filing for a Chapter 7.
- Pro: Some lenders specifically work with borrowers who have filed for bankruptcy, and they can help you get a mortgage.
Filing for Bankruptcy
- Con: You will not be allowed to apply for a Chapter 7 bankruptcy if you have already filed within the last six years. This can shut you off from debt relief if you face another financial disaster.
- Pro: The six-year limit does not apply anymore if you obtained a good faith Chapter 13 discharge. A Chapter 7 bankruptcy lawyer in Raleigh will be able to guide you through your options if you need to file for bankruptcy again.
Debts
- Con: Chapter 7 will not eliminate certain debts, such as student loans, child support payments, alimony, etc.
- Pro: While you are still responsible for these obligations, filing for Chapter 7 bankruptcy means your lenders cannot continue with their aggressive collection activities. Therefore, you will be able to focus on paying these debts back without the constant stress and tension that come with harassment from debt collectors.
Filing for Bankruptcy is Not a Simple Choice
Filing for bankruptcy involves many complex considerations. It has the potential to wipe out your burdens and give you a fresh start, but it also comes with consequences you need to face.
Weik Law Office’s Chapter 7 bankruptcy lawyers in Raleigh, NC are here to guide you through the entire process, always in a dignified and compassionate way. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.