Chapter 7 bankruptcy is one of the most common types of bankruptcy filed by both individuals and businesses. However, whether it’s right for you or your business is dependent on your situation.
It’s a good idea to know both the pros and cons before you make the decision to move forward. Chapter 7 may be perfect for your situation. Then again, Chapter 13 might be more fitting. Our bankruptcy lawyers can help you figure out which is best for you, but we have provided some additional information to give you an idea of what to expect. Click here for more information about Chapter 7 bankruptcy (http://www.zerodownbankruptcy.com/bankruptcy-lawyer-st-petersburg-florida/Chapter-7/).
Reasons You May Not Want to File Chapter 7
Obviously, the biggest downside of a Chapter 7 bankruptcy is that it reflects poorly on your credit report. Potential lenders will be able to see that you have filed bankruptcy and may be hesitant to offer you a line of credit, at least at their usual rates.
The creditors that were listed on your bankruptcy will likely be hesitant ever to offer you credit again—unless they see evidence of sound financial planning and maintenance over time. For more information on Florida bankruptcy attorneys who can help, click here (http://www.zerodownbankruptcy.com/).
Why You Might Choose Chapter 7
On the other hand, Chapter 7 bankruptcy has its benefits. One of the most significant features of Chapter 7 is the sense of relief you will feel when you are no longer drowning in debt or being hounded by creditors that you are unable to satisfy. Chapter 7 provides a new beginning, free from wage garnishments not related to domestic costs. There are no more collection phone calls, and you might actually be happy to get your mail out of the mailbox.
Not as Bad as You Think
Although many people view Chapter 7 as something that will ruin their credit forever, it isn’t damaged as much as you might think. Lenders are going to look at your credit record differently than they would if you had a solid credit history without bankruptcy, but it won’t be any worse than your credit was before you filed. At least after Chapter 7, creditors can look at your credit report and see that you don’t have a long list of debts to pay off, and you can’t file bankruptcy again anytime soon.
This means you may get offered lines of credit that you did not expect. The interest rate is going to be high at first, but as you build your credit, you can watch your interest rate fall and your credit score increase. Perhaps one of the most important parts of filing Chapter 7 is the knowledge you gain during the process that can help you avoid financial issues in the future.
Don’t forget to share this post online, so that it can help other people who are considering Chapter 7 bankruptcy.
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