Filing for Chapter 7 bankruptcy may be the only way to reclaim your life from unmanageable debt, but many may find the process intimidating and overwhelming. While it’s normal to be apprehensive, understanding the benefits and hiring an experienced bankruptcy attorney can provide peace of mind and help you make the right choice. Below are a few factors anyone considering filing for bankruptcy should understand.

Understanding Chapter 7 Bankruptcy

Liquidating Debts

Chapter 7 bankruptcy allows you to completely eliminate most unsecured debts, including personal loans, credit cards, and some back taxes. Mortgage debt after a foreclosure can also be discharged, along with lawsuit judgments and medical expenses. However, Chapter 7 bankruptcy can’t help with secured debts like mortgage and auto loans, although eliminating other obligations can free up enough room in your budget to catch up on those debts.

Seizing Assets

In exchange for eliminating your debts, the trustee of the court has the right to seize some of your assets to pay off your creditors. However, each state makes some types of property exempt from seizure, so many borrowers don’t have to surrender anything at all. An experienced bankruptcy attorney can review your financial situation and ensure you keep as much of your property as possible.

Appearing in Court

Courtroom hearings are often extremely stressful, especially if you only have limited experience with the legal system. Fortunately, most petitioners will never have to appear in court. However, you will have to attend a meeting of the creditors, during which the trustee will review your chances, and lenders may challenge your bankruptcy. Most people prefer to let their bankruptcy attorney attend the hearing on their behalf to make the process as easy as possible.

If you’re struggling with financial obligations you can’t meet, Mark O. Grater Attorney at Law will help you get a fresh start. This dedicated bankruptcy attorney has been serving clients throughout the Groton, CT, area for over 30 years, offering dependable service and guidance along the way. Visit their website to learn more about their debt relief services or call (860) 449-8059 to schedule your initial consultation.