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You can keep some assets in Chapter 7 bankruptcy

Chapter 7 bankruptcy has many advantages, and this is why it is a very popular choice for those who are struggling with overwhelming debts. However, as in all bankruptcies, there are some sacrifices that need to be made.

Chapter 7 bankruptcy is often known as liquidation bankruptcy. This is because it involves debtors liquidating many of their assets so that their debts can be paid off. This is why Chapter 7 bankruptcy is typically more suited to those with fewer assets because once you have liquidated all non-exempt assets, you'll likely be subject to having all debts written off.

Your options when struggling with credit card debt

If you have been dealing with quickly accumulating credit card debt, you're probably worried about the future and the implications that not keeping up with repayments might have. It's especially important that you don't simply ignore these types of financial problems, and that you instead keep yourself updated in regard to the status of your finances.

If you see no way out of your credit card debts because you simply don't have the disposable income to dedicate toward paying it off, you should consider your options and take action on the strategy that works best for you.

Why Chapter 7 bankruptcy is associated with fresh starts

Everyone needs to have a fresh start sometimes. Whether it's starting a new diet, moving home, or getting rid of financial burdens, getting a fresh start can be uplifting psychologically and improve quality of life significantly. If you have been struggling with poor cash flow for some time and your debts have accumulated, you may be longing for a fresh start. The dream of gaining a fresh start and becoming debt-free in a relatively short time can become a reality if you file for Chapter 7 bankruptcy.

Chapter 7 bankruptcy is unique because it takes only a matter of months to complete. Not only that but in the majority of circumstances, the successful completion of the bankruptcy results in the complete discharge of all debts. This is why it is often referred to as the "fresh start" bankruptcy. If you are considering filing for Chapter 7 bankruptcy to gain a fresh financial start, the following is what you need to know.

Could Chapter 11 bankruptcy save my business?

Debt can be a heavy burden on businesses. If you are a business owner and your company currently has a significant amount of debt, it's likely that this has taken a major toll on your ability to run your company. You may even be concerned about its future viability.

It's therefore important that you are proactive in your approach to considering ways in which you can improve the financial situation of your business. Bankruptcy is a realistic option for many companies with financial struggles, as it can pave the way for a more financially successful future. Chapter 11 bankruptcy is particularly suited to struggling businesses since it can help to reorganize the business structure and plan for future profitability. The following is an overview of this bankruptcy Chapter.

How do I stop my credit card dependency?

Credit cards can be a great asset to have. When used responsibly, they can provide security against purchases, and they can also help to improve your credit score when you show that you are reliable with repayments.

However, if you become too dependent on credit cards and routinely spend more than you earn, credit card interest rates will likely have a negative effect on your life. If you become accustomed to shopping trips paid for by your credit card, you may develop a habit that could become an addiction. If you know that your credit card is having a negative effect on your life but you feel unable to stop, you should consider taking the following actions.

Why Chapter 7 bankruptcy is so popular

There are many different ways to file for bankruptcy. The routes for doing so are called bankruptcy "chapters." The most beneficial bankruptcy chapter for you will depend on your individual circumstances. If you are a private individual filing for bankruptcy as opposed to a business, you will generally have two possible routes to bankruptcy: Chapter 7 and Chapter 13.

To understand why Chapter 7 bankruptcy is very popular, you should first understand the shortcomings of Chapter 13 bankruptcy. The following is an overview of the shortcomings of Chapter 13 bankruptcy and the benefits of Chapter 7 bankruptcy.

Eliminating debt doesn't need to be difficult

It's always easier to spend money than it is to earn it. That's why everyone needs to keep track of their spending so that they do not spend more than they are earning in a given period of time. When a person gets into a significant amount of debt, it simply means that they have not been living within their means.

If you are currently unemployed or have a low income, living within your means may be impossible. Even in these difficult circumstances, there are still ways in which you can reduce or even completely eliminate your debt. The following are some strategies that you may want to consider.

Getting control of credit card debt doesn't need to be difficult

Credit card debt can arise seemingly out of nowhere. If you have several credit cards and you rely on them regularly to purchase daily items, you may start spending more than you earn. If you do not keep track of your spending and don't pay back the minimum repayments on your credit cards within the given time frame, you may end up in a cycle where you need to pay back credit card fees that you cannot afford.

While credit card debt is stressful and scary, solving the issue could be simpler than you think. The following are some ways that you may be able to successfully get control of your credit card debt.

Can Chapter 7 bankruptcy help those with a shopping addiction?

Many people have problems with compulsive shopping. Casually termed as "retail therapy", it's common for light-hearted jokes to be made about those who love to shop and have more clothes than they can wear. However, those with a shopping addiction can find themselves in a dark place emotionally, especially when their compulsive shopping is negatively affecting their finances and their relationship.

If you believe that you or your partner is addicted to shopping and you have found yourself in a great deal of debt because of this, you will need to address the problem in two ways. First, you'll need to address the underlying reason for this compulsive behavior so that you have a chance of stopping it. Second, you will need to tackle your debts so that you have a good chance of getting a fresh start.

Will I lose everything if I file for Chapter 7 bankruptcy?

Filing for Chapter 7 bankruptcy is potentially a great option for those with little to no income and a high amount of debt. While you may not have any assets in your bank account, you may have a significant amount of assets in the property that you own, from your house and car to your technology and jewelry.

Chapter 7 bankruptcy involves the liquidation of assets. Therefore, you will have to part with a significant amount of your possessions when you are filing. Many people worry that this will mean that they will lose everything. However, the bankruptcy exemptions ensure that you will be able to keep essential possessions. The following are the exemptions that apply in Chapter 7 bankruptcy filings.

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