3 Things to Know About Filing for Chapter 7 Bankruptcy

One of the most difficult times in life may involve not having enough money. You're sure to endure some financial challenges over time, and working to get out of this situation can be tough. However, filing for the legal status of Chapter 7 bankruptcy may be the way to get the best assistance. Doing so may allow many of your debts to be paid off if you qualify. However, it's important to know specific things about this type of legal filing if you wish to have success.

1. Fees

One thing you'll need to be aware of is there are fees for filing for Chapter 7 bankruptcy. These will need to be paid before you can begin the filing process.

It's ideal to inquire about the actual cost when you to the courthouse to begin the filing process. This will provide you with with an exact amount for this expense.

However, if you hire an attorney to assist with your bankruptcy, you can count on paying an additional cost.

2. Debt

Not all of your obligations will be discharged, and it's ideal for you be aware of the ones that may not. Below is a list of some of the common debts that you will have to pay:

1.    Taxes – If you own money to the Internal Revenue Service (IRS), you'll have to pay this money.

2.    Child support or alimony – Going through a divorce can be a difficult time, but if you are required by law to pay child support or alimony, you'll have to do so.

3.    Student loans – Borrowing money to pay for an education is common for many people. However, you should keep in mind that the money you borrow will need to be repaid.

3. Information

When filing for a Chapter 7 bankruptcy, there is a lot of information you'll need to provide. For instance, you'll need to know the amount of debt you have and be able to list the creditors individually.

It's also critical to list the number of your monthly expenses and how much you earn on an annual basis.

Taking the time to file for this legal status may be one of the best things you can do. You'll be able to get rid of a lot of your debt burden, which is ideal. Be sure to check out bankruptcy attorney services in your area today to assist you with this process.