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Filing for Chapter 7 with a bankruptcy lawyer in Raleigh, NC can give you a fresh start and help get rid of your unsecured debts. In this article, we’ll discuss the important issues after Chapter 7, and the ways you can regain financial control and rebuild your standing.
Duration of Chapter 7 Bankruptcy
The Chapter 7 bankruptcy process typically takes four to six months to complete. However, if you encounter a complicated case or creditors refuse your discharge, it may take longer.
Chapter 7 bankruptcy can also remain on your credit report for ten years, but this should not stop you from applying for new credit. A lot of debtors begin getting new credit card offers after their discharge.
Debts Under Chapter 7
Most unsecured debts can be discharged following bankruptcy. EXCEPTIONS include:
- Child support
- Spousal support
- Government-funded student loans
- Federal tax liens
- Penalties for violating the law
- Cooperative housing fees
- Some tax-advantage retirement plans
In addition, your tax debt may be discharged if all of the conditions below are met:
- The taxes are income taxes.
- You did not commit fraud.
- You had filed a tax return.
- The debt has exceeded three years.
- The income tax debt underwent assessment at least 40 days prior to the bankruptcy petition or had not undergone assessment.
Steps in Getting and Rebuilding Credit Post-Bankruptcy
With the help of Chapter 7 bankruptcy lawyers in Raleigh, NC, you can start rebuilding your credit to re-establish your good financial standing. Here are some helpful tips to start off on this journey:
- Acquire a secured credit card. A lot of new credit card offers post-bankruptcy will have low limits and high interest rates. They will also have higher annual fees. Therefore, it is essential to review the card’s terms.
With a secured credit card, you put in a particular amount of money in the bank, which serves as collateral for the card. In place of it, you get a line of credit equal to the amount in the account.
- Check the credit report for mistakes. After your discharge, double check your credit report. If you spot an error, have it corrected since it could damage your efforts on rebuilding credit.
The Lessons of Chapter 7 Bankruptcy
Accumulating debt and not being able to pay for it is depressing. With Chapter 7 bankruptcy, you can get a new lease on life. Apply the lessons learned and rebuild your credit with the help of your attorney. Doing this will help you avoid falling into deep debt again.
With the most experienced and most caring Chapter 7 bankruptcy lawyer in Raleigh, Weik Law Office will help you get through Chapter 7 successfully from beginning up to end. 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.