There are numerous potential reasons to file Chapter 7 bankruptcy, and usually there are several combined factors that lead someone to make that decision. Nobody wishes for financial hardships; but unfortunately, hard times and difficult circumstances force many Americans to seek solutions such as this.
Possible Reasons to File Chapter 7 Bankruptcy
Why do people file for bankruptcy? Five of the most common reasons are:
- Efficiency – Chapter 7 bankruptcies can be relatively low-cost and may only take a few months to settle. This may be attractive to individuals and couples looking for a fresh start.
- Ownership Flexibility – If you own a home or a vehicle, you may still be able to keep the property and avoid home or car repossession, provided you meet certain guidelines.
- Free from Debt – Your unsecured debt (e.g., credit cards) will be discharged and you’ll no longer have to worry about further payments or debt collector calls.
- Future Credit – Many people are concerned about a tarnished credit record, but there are ways to reestablish credit after bankruptcy.
- Relief from Stress – The burden of debt is heavy and may leak into every facet of people’s lives. Bankruptcy and dismissed debt could mean a reduced stress level and help point people’s lives in right direction.
Too often people are overly afraid of discussing bankruptcy for fear that they’ll lose their possessions or that their bankruptcy filing will be published in the newspaper. Don’t let these false assumptions discourage you; you may be able to avoid car repossession and your name won’t be plastered across the Plano Star or Dallas News.
Contacting a Chapter 7 Bankruptcy Attorney in Plano
If you find yourself in a seemingly inescapable financial crunch, it may be time to go over your options with a legal professional. Our legal firm, Warren & Migliaccio, L.L.P., has helped individuals with their Chapter 7 bankruptcies and will gladly schedule a free consultation with you.