People who are considering filing bankruptcy may be able to figure out the paperwork on their own, but it can be very confusing. Hiring a chapter 7 bankruptcy lawyer in Fall River, MA usually makes more sense for a number of reasons.
Not Everyone Qualifies
A chapter 7 bankruptcy lawyer in Fall River, MA will be able to explain the differences between chapter 7 and chapter 13 bankruptcy and what each involves. For example, people who’ve filed for bankruptcy within the past 6 years can’t file for bankruptcy again. Some people will be found to make too much money to file for a chapter 7 bankruptcy, in which case the court may convert the filing to a chapter 13 bankruptcy. This means instead of having debt forgiven and being mostly debt-free after about six months, the person will have to work to pay off the debt on a payment plan for up to 5 years before any remaining debt is forgiven.
Understanding the Implications
Not everyone truly understands what happens when they file for chapter 7 bankruptcy. They may not realize that a lot of valuables, possibly including their home and car, may be sold off to pay their debts. Filing for bankruptcy also impacts a person’s credit rating for up to 10 years, making it hard to get a new credit card, a loan or a mortgage for at least 3 years and possibly longer. Even when credit does become available, it will be at a much higher interest rate than it would be for a person who didn’t have a bankruptcy on their record.
Not All Debt Qualifies
It’s also possible to file for bankruptcy and still have a lot of debt after the process is complete, as not all debt is forgiven. Student loans, child and spousal support, back taxes, money owed to the government and certain other debts are not dismissed during a bankruptcy case.
Contact the Business Name for more information on filing bankruptcy.
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