Financial difficulties can strike anyone at any time. Even savvy business owners can hit a financial wall and be crushed under the weight of it. If you are stretched too thin because your income has decreased or your bills are more than you can pay, it may be time to consider a Chapter 7 bankruptcy. If you are having credit difficulties along with the the money problems, consult with a Chapter 7 bankruptcy attorney. Here is why bankruptcy may be a good option for you right now.
Chapter 7 Liquidates All Debts Except Your Mortgage and School Loans
A Chapter 7 bankruptcy liquidates all of your debts except your primary mortgage and your school loans, if applicable. When you are really stretched thin and cannot afford to make payments to your creditors and you are already falling behind, this bankruptcy can resolve all of those issues in one fell swoop. You should be advised, however, that you have to pass a means test to prove that you are not financially well off enough to actually pay your debts going forward, or that you have substantial assets in your name or being held in a family member's name to avoid using those assets to pay your creditors.
When Your Credit Is Being Hit with Every Late Payment, a Bankruptcy Can Make It Better
Many people are able to acquire a credit card again about a year or two after filing for bankruptcy. It is not a total credit score killer, and it can help with your current credit score issues. This is something to consider if you are worried about damaging your credit and your credit is already being damaged by your lack of timely payments on your current debts.
You Can Apply for Financial Support to File for Bankruptcy
If your situation is so bad that you cannot even hire a bankruptcy attorney, you should know that a lot of lawyers are willing to take payments. Courts also offer reduced or zero filing fees if you can prove that you are indigent and unable to pay the filing fees for your bankruptcy (and other court cases). If this sounds like something that could really help you in your situation and help you file for bankruptcy to absolve almost all of your debts, ask your lawyer about payments and then apply for financial assistance through your county courthouse in the clerk's office.