5 Questions You May Have About Chapter 7 Bankruptcy
Are you seriously considering using Chapter 7 bankruptcy to eliminate your credit card debts? If so, there are several things you should find out before filling out the documents. Here are five top questions to ask a lawyer before you choose this route.
1. How Long Does It Take?
Asking about the timing of a case is essential, and the good news is that Chapter 7 cases are generally quick. If you file today, you might be finished with your case in just six months. The timing matters because you will have things to do during this period. The trustee and your lawyer may ask for documents from you. They may have questions for you. Getting through a bankruptcy case quickly is vital, so it's good to know that you will likely finish the plan within just six months.
2. How Much Does It Cost?
Next, you should ask about the costs involved with filing for Chapter 7. There are two main expenses with a bankruptcy case. The first is the required filing fees that the court charges, and the second is the legal fees a lawyer charges for handling the case for you. The amount a person spends on Chapter 7 varies, so contact a lawyer to find out what you should expect to pay in your case.
3. Do You Quality for It?
You should talk to your attorney about eligibility, too. You cannot use Chapter 7 unless you qualify for it. To qualify, your lawyer will evaluate your income. If you meet the income requirements, you can use this branch.
4. What Relief Does It Provide?
You should always find out the relief that Chapter 7 provides before using it. Chapter 7 helps many people, but it is not right for everyone who is struggling with debt. A lawyer can tell you how it will help you before you file, and you should base your decision on this factor.
5. What Assets Will You Lose?
Finally, talk to your attorney about the risks you have for losing assets. Losing assets is something that can happen with a Chapter 7 case, but it doesn't always happen. It depends on the situation.
Asking these five questions can provide you with the answers you need to decide whether to file. If you have further questions or need legal advice, meet with a Chapter 7 bankruptcy attorney in your area today.