A lot of consumers who are struggling financially wonder if filing chapter 7 bankruptcy is the right decision to make. A good way to learn more about this option is to go for a Chapter 7 Legal consultation in Chicago with a bankruptcy lawyer. With this type of bankruptcy, it is possible to discharge credit card debts and most loans. There are some eligibility requirements that consumers have to meet in order to file for chapter 7. At the end of the process, consumers will no longer be burdened with monthly payments to creditors that are not affordable or sustainable.
The bankruptcy attorney will go over the consumer’s financial situation to determine if filing for bankruptcy makes sense. The trustee is not going to approve the filing unless there is no way for the consumer to repay the creditors. A common situation that usually results in approval is when the debtor experiences a permanent income loss due to outsourcing or jobs that have disappeared permanently from the economy. Many people have accumulated medical debt with no hope of being ever able to repay in full. These two situations are just examples of when it is the right time to file for bankruptcy.
There are some downsides to filing for chapter 7. First of all, the bankruptcy will remain on credit bureau reports for ten years. It will be nearly impossible to get credit for the first few months after the bankruptcy. Jobs that perform credit checks may decline a candidate due to a recent bankruptcy. This is especially common in the financial sector. However, those who have gone through bankruptcy eventually are able to get credit within a year or so. The credit lines will be small, but it is the first baby step towards establishing good credit again. Large credit lines are available after around five to seven years. It may be possible to get a mortgage after two or three years. The consequences of bankruptcy on access to credit are severe, but most people are eventually able to open credit card accounts and loans within a few years. The lawyer will go over the downsides to make sure the consumer is aware of them. Despite the consequences, it is often worth it to file for bankruptcy in order to get financial relief. Read more on website .