The Cases When Chapter 7 Will Be A Good Option For You

With the economic situation out there, people are truly finding it difficult to make ends meet, to pay their bills in time and to make sure that their creditors will not be left hanging either. Unfortunately, many families find themselves in the situation where declaring bankruptcy is their only option. The truth is that such a move can indeed save you a lot of money and even more importantly, it will help you start anew without huge amounts of debt lurking from your history. Yet, before doing anything you should inform yourself thoroughly on what you actually need to do and what is the best choice for you.

Chapter 7 bankruptcy is one of the most common options for individuals in the United States of America. Although it may feel a lot like other types of bankruptcy (Chapter 13, for example), it will have its particular traits that make it suitable especially under certain circumstances.

One of the cases when Chapter 7 bankruptcy is the best choice is when you are judgment proof. That means that creditors do not have the right to file a case against you because the only property you have are things that are protected. For instance, if your only source of income is your Social Security, then creditors will not have any right to sue you for your debt. Also, they will not be able to take your house, car or any other important asset. To make sure that you are judgment proof and that Chapter 7 is actually suitable for you, consult yourself with a bankruptcy lawyer and explain your situation to him/her because only this way you can be certain that you are doing the right thing. To find out more about what hiring a dallas bankruptcy attorney will mean, go here.

Another thing that will make Chapter 7 suitable for you is when this type of bankruptcy erases enough of your debt to make the trouble actually worthwhile. Again, to find out more about whether or not this is the case for you, you should definitely check out with a bankruptcy lawyer.

Last, but not least, talk to a professional about which of your things will be exempt from being taken away. Typically, reasonable clothing, furniture, goods, jewelry (up to a certain value) and one of your cars (up to a certain value as well) cannot be taken away in any of the U.S. states. However, check with an attorney to make sure.