In filing a chapter 7 bankruptcy, however, you are not seeking a repayment plan. Instead, you are asking the court to cancel most of your debts because you do not have the resources to pay them. It is important to note, that either chapter will treat secured and unsecured debt differently. An example of secured debt would be your home, vehicles, and other similar debt. Credit cards are a perfect example of unsecured debt. Most consumers are surprised to learn that certain credit cards can be treated similar to secured credit. A perfect example of this would be a “store” credit card. Chapter 7 petitions generally take three to six months from beginning to end.
The decision to file for bankruptcy should not be taken lightly. The bankruptcy filing will remain on your credit report for approximately 8 to 10 years. Also, you can only file for bankruptcy protection once every 8 years.
If you and your family are considering filing for bankruptcy protection you should consult a local attorney who practices bankruptcy law. They will assist you in determining if bankruptcy is a good choice for your particular circumstances. Most law offices provide a free bankruptcy consultation. You should never be pressured to file bankruptcy. If available the attorney should and will provide you bankruptcy alternatives. Also, it is advised that you meet with the attorney who will prepare your petition. As a consumer, you should also require that the attorney who prepares that petition be the same attorney that will represent you at the 341(a) hearing (also known as the meeting of creditors.)
There are many aspects to a bankruptcy petition, but overall filing for bankruptcy protection allows you and your family a “fresh start.” It is named bankruptcy “protection” for a reason…it provides you and your family protection from creditors under a set of federal laws.
Written by: Jeremiah Raxter, Esq
Local Menifee Lawyer
951-226-5294
