Chapter 7 Bankruptcy Limitations
For some people, filing for Chapter 7 bankruptcy is the best solution to severe financial problems. It is not the best course of action for everyone in debt, however. If you are considering this option, you need to be aware of its limitations. If you are not sure whether Chapter 7 is the answer for you, contact Austin Chapter 7 bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP, at 512-338-1100.
Some of the downsides to filing under Chapter 7 include:
- Debts that cannot be discharged. If you were counting on the discharge of your debts to solve your problem, you should be aware that some debts will not be forgiven. Taxes, student loans, child support, and money lost in lawsuits will need to be paid even if you are bankrupt.
- Loss of valuable property. You can make a strong effort to retain your home, car, business, or other assets that are important to you. However, there is a chance that you will not be successful in doing so. Sometimes getting out of debt requires making large sacrifices.
- Having a note in your credit report. If you file for bankruptcy, that fact will be noted on your credit report for up to 10 years. However, at the end of that time, it will be erased.
- Not everyone qualifies. There are certain strict criteria you must meet before filing for Chapter 7 bankruptcy. For example, your average income cannot exceed a certain amount. If it does, you will need to explore other financial options.
Contact Us
For important advice about climbing out of debt and chapter 7 bankruptcy limitations, contact Austin chapter 7 bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP, at 512-338-1100.