Pursuing The Protection Of Bankruptcy

Financial difficulties can be a common issue for individuals to encounter. Unfortunately, there are many individuals that will find that their financial issues can be too much for them to overcome without help. In these situations, you may find that working with a Chapter 7 bankruptcy attorney can be a solution that may allow you to regain control over your finances.

Chapter 7 Bankruptcy Protection Can Involve Liquidating Assets 

While there are many types of bankruptcy protection available, Chapter 7 is among the more common as this can allow a person to use the court to liquidate their assets to safety and discharge the debts that they have accumulated. Not surprisingly, individuals can be uncomfortable with the idea of having some of their assets liquidated during these proceedings. However, there are exceptions for assets that can be protected. For example, many states will allow a person to retain their home during bankruptcy proceedings. Reviewing the list of exempted assets for your state can help inform your decisions regarding the use of this type of bankruptcy protection.

Chapter 7 Bankruptcy Can Completely Discharge Debts

While the use of Chapter 7 bankruptcy can result in the liquidation of some of your assets, it will have the benefit of completely discharging debts. This can make this option a pathway for individuals to take to fully restore their financial well-being as it can give them a fresh start. For contrast, Chapter 13 bankruptcy will still require the debtor to make payments to their credits, but the terms of these payments will be reworked to make it easier for the debtor to satisfy their obligations. As a result, these individuals may still have years of payments that they will have to make before their debt has been fully discharged.

A Person That Seeks Bankruptcy Protection May Have To Complete Financial Education Courses

As part of the terms of the bankruptcy proceeding, the debtor will have various obligations that they will have to satisfy. A very basic example of this could be the debtor needing to be truthful when providing a list of their assets and other financial information. However, the courts can also require a person to complete financial education courses. These courses can provide individuals with the information that they need to help them avoid potentially serious financial issues in the future.

Once this course has been completed, you may have to provide your certificate of completion to the court as proof, and while this can be a mandated part of the process, it is highly advisable to maximize what you learn from these courses as it can be beneficial as you rebuild your finances after the bankruptcy proceedings.

Consult a chapter 7 bankruptcy attorney to find out more.