Most people seeking bankruptcy advice do not know a lot about filing for Chapter 7. Yet, they might need help eliminating their debts, and they turn to bankruptcy attorneys for assistance. If you are considering Chapter 7 bankruptcy, learning the following four things to expect might help you decide if Chapter 7 is right for you.
1. To Receive an Automatic Stay
One thing you should expect with a Chapter 7 case is to receive an automatic stay. An automatic stay is a normal part of any bankruptcy case, and it provides relief from your creditors. When the court issues this stay, they will notify your creditors. Your creditors are prohibited by law from contacting you through the mail, phone, or email. They cannot contact you at all for the debts you owe. As a result, your phone might stop ringing once your creditors receive this notification.
2. To Receive a Discharge of Your Qualifying Debts
The second thing to expect is to receive a discharge of your qualifying debts. A discharge is another word for forgiveness. When the court forgives a debt, it wipes it away, meaning that you do not owe the money. In a Chapter 7 case, you might receive a discharge on a lot of your debts. You probably will not receive it for all our debts, though, as it only works for qualifying debts.
3. To Have a Posting on Your Credit Report
Another thing you can expect is a drop in your credit score. When you file your bankruptcy case, the court will post the filing on your credit report. A Chapter 7 case will not drop off your report for ten years. Therefore, filing for bankruptcy can have long-term effects on your credit.
4. To Possibly Lose Some Assets
Finally, when you file for Chapter 7, you should expect to lose some assets. You risk losing your house, cars, money, and future tax refund checks. Before you file, your lawyer will review your situation and tell you what to expect to lose. Some people lose nothing, while others lose a lot of things.
These are four things that will likely happen if you file for Chapter 7. The good news is that filing for Chapter 7 might provide the relief you need from your debts and creditors. You can learn more about this by talking to a Chapter 7 bankruptcy attorney in your city.