The decision to file for chapter 7 bankruptcy should always come after diligent research about the pros and cons of the system. A debtor must look for warnings as to when it is time to consider filing for bankruptcy. The debtor should also consider consulting with a qualified San Antonio bankruptcy lawyer.
While filing for chapter 7 bankruptcy in San Antonio might not seem to be the right idea for some debtors, it is the most logical and reasonable option available for some debtors. However, before filing the petition, it is necessary to carefully determine how filing for chapter 7 bankruptcy will impact on the debtor’s current debt-load, debt-to-income ratio, and financial health. Only after reviewing all the relevant facts should one opt for filing for bankruptcy to start afresh.
Few reasons for debtors to consider filing for chapter 7 bankruptcy in San Antonio include;
- Filing for chapter 7 bankruptcy prevents the debtors from getting harassed by the creditors. Once the process is started the creditors are prohibited from contacting the debtors about the debt. After the process is completed, the debtor no longer responsible for any of the debts discharged in his bankruptcy.
- Debts like credit cards, personal loans and medical bills are eliminated or consolidated.
- Unlike Debt settlement, no income tax liability is created on debts discharged in filing for bankruptcy.
- The payout fees are set up on a payment plan chosen by the debtor.
- If “cooperated & graduated” by the debtor, the he is free of all those dates when the case is completed.
- Filing for chapter 7 bankruptcy in San Antonio immediately stops a current lawsuit in spite of the creditor obtaining a judgment in a previous lawsuit. After a lawsuit case is concluded, any judgment received on a lawsuit is termed null and void.
- Filing for bankruptcy helps in stopping foreclosure of the debtor’s house, repossession of his car or garnishment of his bank account.
- The debtor’s security clearance is also protected by chapter 7 bankruptcy.
Quite like a coin, filing for to Chapter 7 bankruptcy has two sides to it too. While bankruptcy has its perks, it has a few downsides too. One of the most critical disadvantages of filing for chapter 7 bankruptcy in San Antonio is that the creditors may still be able to collect the collateral attached to a secured loan. However, in many instances, the collateral item can be kept by the debtor if he reaffirms the debt, but in doing so no undue hardship must be put on the debtor’s dependents or the debtor himself. The reaffirmation agreement also has to be court approved. If a debtor’s decision lies in filing for Chapter 7 bankruptcy in San Antonio, he must consult an experienced San Antonio bankruptcy lawyer. In spite of a few disadvantages, filing for bankruptcy helps in getting your life back. Debt problems can be the source of many issues and choosing the rights means of filing bankruptcy can help start a new and fresh life.