Cleaning Up My Finances

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Cleaning Up My Finances

About six months ago, I could tell that I needed help. It seemed like no matter how hard I tried, I couldn't get my finances in order. I was spending way more than I earned each and every month, and it was absolutely devastating to my pocketbook. One day, I realized that all of my credit cards were maxed out, and that I was past due on my rent. I knew that I was going to get kicked out of my apartment for not paying, and so I started exploring the possibility of borrowing money from a lender. Long story short, my credit was in terrible condition, and I ended up declaring bankruptcy to make things right. Check out this blog to learn more about cleaning up your finances.


3 Reasons To Consider A Chapter 7 Bankruptcy

Hiring a bankruptcy attorney is a fantastic option if you are struggling with debt. Below are three great reasons to consider a chapter 7 bankruptcy filing.

Clean Slate

One of the best reasons to consider a chapter 7 filing over the alternatives is to get a clean slate. A chapter 7 filing will allow you to discharge most of your debts. However, a chapter 13 filing will still force you to repay your creditors, just on more favorable terms. 

Some of the debts that you cannot discharge with a chapter 7 are past due child support payments, spousal support, owed taxes, and student loans. However, a chapter 7 bankruptcy is still worth considering as it can get rid of more types of debt. This makes it perfect for you if you are unable to pay your monthly bills or have lost your job and want to start over.

No More Debt Collectors

Another reason to consider a chapter 7 bankruptcy is so you can stop having to deal with debt collectors. Having a lot of debt that you cannot pay back can often result in you dreading answering your phone for fear of having to deal with an aggressive or pushy bill collector.

However, once you begin the chapter 7 filing process, you will not have to speak to or deal with debt collectors. This is because once the filing process has begun, the bankruptcy court will notify your creditors and let them know that they must stop all collection activities. If any creditors do try to contact you, you can simply notify your bankruptcy attorney and he or she will contact the creditors and get them to leave you alone.

Keep Money You Earn After Filing

Finally, a chapter 7 bankruptcy filing will allow you to keep money that you may earn after you have begun the filing process. With other forms of bankruptcy, your future income may be subject to seizure in order to repay your creditors. With a chapter 7 bankruptcy, any money you have in your accounts prior to filing is subject to seizure, but anything earned after that is safe, and you are free to do what you please with it.

Speak to a bankruptcy attorney, like those at the Legal Clinic Of Jerry Paeth, today in order to see if a chapter 7 bankruptcy filing is the most beneficial option for you. This type of filing is ideal if you want a clean slate, to keep your future earnings, and to stop having to worry about dealing with bill collectors.