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Will I lose all my assets when filing for Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a very popular choice for those dealing with financial issues for many reasons. First, it offers debtors the chance to be completely free from all their debts. Second, the entire process can be over within a few months.

While Chapter 7 bankruptcy is a very favorable option, it does have some downsides. Since it is primarily concerned with the liquidation of assets to pay off debts, it means that bankruptcy filers are required to part with significant assets as part of the process. Many prospective filers become worried about being left with no assets after the bankruptcy is completed. This will not be the case since there are federal bankruptcy exemptions that apply to basic assets. The following are the assets you will be able to keep when filing for Chapter 7 bankruptcy.

What to expect when filing for Chapter 7 bankruptcy

Many people who decide to file for bankruptcy feel that they are stepping into the unknown. They may feel that bankruptcy was their last possible option to get them out of debt.

While bankruptcy can be viewed as a last resort, it can have a positive outcome. Filing for bankruptcy can make it possible for you to gain a fresh start from your debts and move forward positively. The following are some key things to expect if you are filing for Chapter 7 bankruptcy.

Remedies for gaining back unpaid debts

If you are a business owner who has not been paid after providing a service or commodity to a customer, your cash flow may be suffering as a result, and you will want to gain back the money that you are owed. As a creditor, you have several options available to you.

The possible remedies for gaining back unpaid debts range from informal communication between your debtor, to more serious court proceedings. It's likely that you will want to start by trying to make an honest attempt to gain payment before involving the law.

Wipe out your debts before the new year

If you are battling the debt mountain tooth and nail, now might be a good time to try a different strategy. Filing for Chapter 7 bankruptcy now could bring you the relief from debt that you desperately need in time to begin 2020 debt-free.

A Chapter 7 bankruptcy is short-term and usually concluded within 60 days. By filing now, by the start of the new year in January, it is quite likely that all of your debts will have been discharged.

How does universal default affect my credit card debt?

Those who have significant credit card debts can experience issues due to high-interest rates. Needing to pay interest on top of the initial debt can make it impossible for many people to gain control over their finances.

If you are suffering from overwhelming credit card debts, you should take the time to understand certain terms so that you can use your knowledge to gain control over your situation. The following is a brief overview of universal default and how it can affect debtors.

Strategies for tackling credit card debts

Credit cards can easily get people into overwhelming debt. This is because those with a reasonably good credit score can acquire multiple credit cards very easily. It can be so tempting to use credit cards to make purchases, even when you do not have to funds to pay the debt back at the end of the month. If the minimum payments are not made, interest can start to add up very quickly.

The following are some tips for managing credit card debts effectively. By implementing some of these simple strategies, you will have a better chance of getting control over your debts.

Addressing the common fears of bankruptcy

It's very common for debtors to be fearful about taking action to file for bankruptcy. Making the decision to file for bankruptcy under Chapter 7 means admitting that you have a serious debt problem. This is the first step in a complex debt resolution process.

Filing for bankruptcy also involves committing to change. Even though change can be uncomfortable, it is often both necessary and rewarding. Bankruptcy can help you live a fulfilling life that is free from the burden of debt. Therefore, you should address your fears and then move forward with your plan to resolve your financial dilemmas.

Which bankruptcy filing is best if I don't want to lose assets?

If you are considering filing for bankruptcy in Washington, you will probably already know that different bankruptcy filings result in different processes and consequences. If you are filing for bankruptcy as a private individual, you will likely be choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Generally speaking, Chapter 7 bankruptcy involves the liquidation of assets, whereas Chapter 13 bankruptcy involves a payment plan over three to five years. If you want to minimize the assets that you lose as a result of bankruptcy, it is important to understand more about the assets you will be set to lose by filing for either bankruptcy filings.

What actions can creditors take against me?

If you are struggling to manage your unpaid debts, you likely feel stressed every time you open your mailbox and every time you get a call. Owing money to creditors can be a terrible feeling because you can feel tremendous guilt and anxiety, but you also probably feel powerless to do anything about it.

The good news is that there are many options available to you when it comes to properly managing your debts, from debt consolidation to filing for bankruptcy. But there may also be things that you can do to put a stop to constant contact from creditors. While it's normal to be contacted by creditors, harassing behavior is not acceptable. Creditor harassment is prohibited by law.

Considering bankruptcy to tackle credit card debt

The majority of people use credit cards to some extent. While many see the habit as a secure way to make transactions and have no trouble keeping up with repayments, others get into the trap of using them as their primary source of funding. Sadly, many consumers find themselves using credit cards to spend money that they do not have.

It's easy to see how this gets people into financial trouble. When the credit card bill arrives in the mailbox and it is ignored, this leads to interest on the unpaid debts and a debt spiral occurs.

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Law Office of Ruth Nelson
7742 14th Avenue NW
Seattle, WA 98117
Phone: 206-633-2517
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