Despite their best intentions, there are times when people get in over their heads financially.  Drowning in a sea of debt, many times the only way out is to declare bankruptcy and seek a fresh start.  The guidance of an experienced attorney can help to smooth out the financial and emotional rough edges that are sure to accompany such a decision.

An attorney can also help decide whether filing Chapter 7 or Chapter 13 bankruptcy is the best course of action, given a particular set of circumstances.  Most times, debtors will opt for Chapter 7 because it discharges the most debt, offering maximum relief.

While a debtor may lose some of their non-exempt property which will be sold to help pay creditors, there are still several advantages to filing Chapter 7.

There are no debt limits.  Unlike Chapter 13, when a person files for Chapter 7 bankruptcy, there are no debt limits.

There is no repayment plan.  Under Chapter 13, the court will approve a repayment plan for creditors.  But with Chapter 7 bankruptcy, once the bankruptcy is discharged there are no more obligations or repayments to make.

No attachment to future wages.  With very few exceptions, once a Chapter 7 bankruptcy is completed, there are no obligations attached to future earnings.

A fast settlement. Chapter 7 bankruptcies can be settled in as little as 90 days after a person initially files for bankruptcy.

A short time frame to re-establish credit.  While it’s true that you’ll lose all of your existing credit cards in a Chapter 7 bankruptcy, the good news is that you should be able to regain a credit footing with new cards within one to three years after your bankruptcy is discharged.

Perhaps the biggest benefit to going through a Chapter 7 bankruptcy is that it will afford you a fresh start, free from the considerable worry and burden of trying to live with crushing debt that could otherwise continue to impact your life for many years to come.

Faletti Law Office focuses on family law, tax law, bankruptcy and estate planning for clients in Bloomfield and the surrounding Colorado communities of Arvada, Westminster, Northglenn, Commerce City, Erie, Brighton, Lafayette, Longmont, Firestone, Thornton, Adams County, Jefferson County and beyond.