When many people find themselves in financial trouble and their debt is piling up, they often consider bankruptcy to have a fresh start. Before a person files for Chapter 7 in Lawrence KS, there are a few things that they should know.
Figure Out If Chapter 7 Is the Best Option
Before filing for chapter 7, it is a good idea to figure out if it is the best option. There are certain circumstances where bankruptcy is best, such as if the person is being sued for outstanding debts or if their wages are being garnished. If the debt is not this serious, filing for bankruptcy might not be the best option. If the individual is about to have their home foreclosed on, filing for chapter 13 would give them more time to catch up on the late payments. Also, chapter 13 won’t affect the individual’s credit score as much.
Understand the Options
Before filing for bankruptcy, the individual should understand their options. Chapter 7 is where most or all of the debt is cancelled after three to six months. Chapter 7 bankruptcy remains on the individual’s credit report for 10 years. Chapter 13 gives the individual more time to repay their debt and it remains on their credit report for 7 years. If a person isn’t sure which option is best, they should contact a bankruptcy lawyer.
Understand the Responsibilities
To file for bankruptcy, the individual would be required to complete a pre-bankruptcy credit counseling course with a counselor approved by the court. The reason the court requires this is so it can be determined if the individual could find other means of getting out of debt besides filing for bankruptcy. It is also designed to help the person see where they made mistakes so they don’t need to file for bankruptcy again in the future. If the individual fails to complete the course or if they refuse, the judge will deny their bankruptcy application.
For some people, filing for Chapter 7 in Lawrence KS is the best option. For others, it isn’t. If a person is in debt and they are considering filing for bankruptcy, they should make an appointment with Joe Wittman to discuss their options.
