3 Ways Chapter 7 Offers Relief

When you have way too many bills and debts and not enough income, it typically does not take long to start falling behind on your payments. If you are in this position and have no money left after paying your bills, you could look into bankruptcy. Chapter 7 bankruptcy is one option you have, and here are three ways it offers relief to people in your situation.

It Erases Debts

After filing for Chapter 7, a bankruptcy trustee will receive your case and will review everything in it. As the trustee does this, he or she will closely examine every debt you owe. For any debt that qualifies, the trustee will erase it. This is called a discharge, and it occurs to most non-secured debts. For example, if you owe thousands of dollars for medical bills, these debts will be discharged, leaving you owing nothing. The same thing occurs with credit card bills and any other debts that qualify for a discharge. A bankruptcy lawyer can help you understand what debts qualify and what debts do not before you file.

It Stops Creditors from Contacting You

Almost immediately after filing for bankruptcy, the court will issue an order to your creditors that stops them from pursuing any form of collections from you. This order stops them from sending letters, calling you, and emailing you. This is one of the main ways you will find relief, especially if you currently avoid answering your phone because your creditors are constantly calling you.

In fact, if you constantly have creditors calling you, this is something you should consider a red flag, and it should cause you to look into bankruptcy or some other type of alternative method for debt-relief.

It Teaches You How to Manage Your Money

One other feature of Chapter 7 bankruptcy is the credit counseling courses you will be required to take. You will have to take two of these courses, and the benefit of this is that the courses will teach you how to manage your money. By taking these courses, you might be able to avoid falling into the trap of debt in the future, and this may bring you some relief not only right now, but in the months and years to come.

If you cannot pay your bills and are tired of getting phone calls from creditors, you should look into bankruptcy. Bankruptcy is not always the only way out of debt, but it does offer benefits in many situations. Contact an attorney, like Greg Dunn Bankruptcy Attorney, for more help.