Hollister Chapter 7 Bankruptcy Attorney

Hollister Chapter 7 Bankruptcy Attorney

If you are struggling under the burden of debt, it is time to learn a little bit about Chapter 7 bankruptcy. Chapter 7 bankruptcy is a powerful legal tool that allows you to legally discharge debt and get a fresh start in your personal finances. Learn more about the pros and cons of Chapter 7 and what a Hollister Chapter 7 bankruptcy attorney can do for you. 

What is Chapter 7 Bankruptcy?

There are many different types of bankruptcies. Some are for businesses or farms, while others are for individuals. Bankruptcy cases filed under Chapter 13 require the debtor to follow a payment plan that will repay part of their debts. Chapter 7 is often the best option for individuals or married couples who want to file bankruptcy. If your income qualifies you for this type of personal bankruptcy case, you will not have to make payments over a period of several years under a court’s repayment plan. Instead, your debts will be discharged when your case is successfully processed, and you will be able to get a new start more quickly.  

How Can a Chapter 7 Bankruptcy Help Me?

Many debtors are worried about the effect that a Chapter 7 bankruptcy will have on their credit. It is true that bankruptcy cases are reported to the credit bureaus for a period of ten years after filing. But this does not automatically preclude you from any financial services. These decisions are made on a case by case basis, and some financial institutions are willing to work with borrowers who have a bankruptcy on their credit report. It is also important to consider the alternative. If you do not file for bankruptcy, and instead carry unpaid debts on your credit report indefinitely, this will also have a negative impact on your credit rating. In many cases, the effect of continued bad debt is worse on a credit report in the long run than the temporary effects of a bankruptcy. 

Are There Other Options for Debt Relief?

 Some debtors might have other options besides Chapter 7 bankruptcy, but in many cases, these alternatives are not as effective. As discussed, a Chapter 13 bankruptcy requires repayment. If you do not make payments under the plan for several years, none of your debts will be discharged, and you are left back where you started. 

 Other debtors try to negotiate payments or cash buyouts with their creditors. While some will accept less than the total amount owed if you are able to make a fast cash payment, this is entirely at the discretion of the creditor, and it does not always solve your financial problems. You might stop payment to one creditor in order to pay another – and so on, without any real relief from your debt. A bankruptcy attorney can help explain these options, so you will know if Chapter 7 is best for your particular situation. 

The Right Bankruptcy Attorneys for Hollister Debt Relief

 If you are burdened by debt, the experienced bankruptcy lawyers at Miranda, Magden & Miranda, LLP, are here to help. Contact us to schedule a consultation.