Information You Need to Know About Bankruptcy Chapter 7
Filing bankruptcy is a great debt relief tool especially after suffering from financial problems and unmanageable debt. There are different types of bankruptcy, such as Bankruptcy Chapter 7, Chapter 11, and Chapter 13. This article will try to give you a quick overview of how much it will cost to file bankruptcy and how a bankruptcy filing can get your debts wiped.
While filing bankruptcy can give you a fresh start, it also has some disadvantages. It can potentially give you a low credit score (although it’s likely that you already have bad credit even before filing) and give you a hard time applying for loans. So before deciding whether to file bankruptcy or not, it is best to look at all the facts. Getting a bankruptcy attorney in Washington can also help you weigh your options and explore other debt relief tools.
How Much Does a Bankruptcy Filing Cost?
Aside from knowing how bankruptcy works, the first thing that you should know is how much a bankruptcy will cost. When filing a Chapter 7, bankruptcy filers must pay a filing fee of $338(unless you’re qualified to file a waiver), and $60 for pre-bankruptcy credit counseling, and $60 for a pre-discharge debtor education course.
Another expense that you should consider are attorney fees. Bankruptcy proceedings can be complicated, and committing mistakes during this process can lead to bigger problems in the long run. Hiring an immigration attorney can help you prepare your bankruptcy petition, prevent creditor harassment, and represent you in bankruptcy court. Actual fees may vary, and bankruptcy costs can range from a few hundred dollars to more than a thousand dollars. At Northwest Debt Relief, we have bankruptcy attorney fee payment plans that aren’t financially heavy on the pocket while we get you under court protection and start the rebuilding process.
What Happens After a Bankruptcy Discharge?
If you file a Chapter 7 bankruptcy, it will usually wipe out all your qualifying debts or unsecured debts (a debt for which the creditor does not have a security interest in collateral) such as credit card debts, medical bills, most personal loans, business debts, past-due utility bills, tax penalties, and unpaid taxes past a certain number of years. Secured debts (debt backed by collateral) such as mortgage and auto loan and priority debts such as alimony and child support aren’t wiped out in a Chapter 7 bankruptcy.
Can I Keep My Car or House After Bankruptcy Chapter 7?
Secured debts such as a house mortgage or a car loan under a Chapter 7 bankruptcy can be kept if:
Your property is exempt from being repossessed under the Washington bankruptcy laws
You aren’t late in your loan payment plans or you’ve received a loan modification when you file for bankruptcy
Most people who file a Bankruptcy Chapter 7 get to keep their homes or cars after filing bankruptcy. This is one of the advantages of choosing Chapter 7: you get to keep your assets by canceling your unsecured debts, like credit card debt, to pay secured debts owed.
Even while you may lose your car or house, bankruptcy still has its advantages. Talk to a Washington bankruptcy attorney today to know more about how to keep your assets in a Chapter 7 bankruptcy.
The process of filing Chapter 7 is fairly quick and easy. It can get you out of debt in as early as 6 months or even less. An automatic stay will also be put in place, which means that creditors must stop collecting money while the bankruptcy is ongoing.
Need Help in Filing Bankruptcy?
Declaring bankruptcy is a huge move, and seeking assistance from a bankruptcy law firm in Washington can make the process easier. At Northwest Debt Relief, we have Washington bankruptcy attorneys who show you the different types of debt, assist you in the bankruptcy process and paperwork. Call us today so we can give you a fresh start.