Being unable to pay your bills is never a good place to be. The stresses that accompany the uncertainty of your financial well-being can become overwhelming. If you are in this situation, you may want to consider filing for a Chapter 7 bankruptcy. Knowing some of the most common reasons to file for this status may motivate you to begin the process immediately and get rid of debt you can't pay.
Reason #1: Low Costs
When you need financial help, the last things you will want to face are high fees. This makes filing for Chapter 7 bankruptcy ideal because you are only required to pay $335, as of June 1, 2014 to file.
This amount will cover the administrative and court fees that are involved to help you reach this legal status.
Reason #2: The Automatic Stay
Have you been harassed by creditors that you simply don't have the money to pay for filing for bankruptcy? This can be an annoying and frustrating experience to deal with and is certain to keep you stressed.
However, the good news is once you begin the filing process for this type of bankruptcy, you won't have to endure this any longer. The automatic stay is put into play as quickly as you file. This means creditors must stop calling you or sending you invoices that you simply can't pay.
Reason #3: Discharge Debt
The entire reason for filing for bankruptcy is to get your debts discharged. However, in most cases only the unsecured debt that you have will be released.
Listed below types of debt that you must continue to pay and won't be discharged:
- Alimony and child support payments – If the court has ordered you to make payments to support you wife or child, these must be paid.
- Student loans – Did you borrow money to get your education? If so, you will be fully responsible for repaying this money back, and it won't be discharged by bankruptcy.
- Debts to the government – If you owe back taxes, these must be repaid by you. Money that you are past due on when it comes to taxes will not be discharged by filing for a bankruptcy.
Finally, there are many reasons for you to file for a Chapter 7 bankruptcy. Be sure to consult with a legal expert like Liviakis Law Firm who can guide you through this process with the accuracy and ease.