Due to today’s very poor economy, more and more people are finding themselves in the cross hairs of having to file bankruptcy, Very often, these people are not voluntarily filing bankruptcy; they are often being forced to declare bankruptcy by their creditors. As such, we are going to discuss 3 little known facts about Chapter 7 bankruptcy.
The first thing about filing for Chapter 7 bankruptcy is to realize that you are going to have to hire a Dayton bankruptcy attorney. As a result, you will have to add your lawyer to your list of creditors. In case you are wondering why you would need to hire a lawyer, the new bankruptcy laws require a bankruptcy lawyer to be present when someone goes through the bankruptcy proceedings.
Second, if you owe taxes or student loans (even if they are private student loans with outrageous interest rates), you will not be able to discharge these debts. As a result, you may have noticed how there are more and more student loans being advertised on television today. These creditors know that regardless of how bad your financial situation is, you will still have to legally pay them back.
Third, a Chapter 7 bankruptcy will remain on your credit report for up to 10 years. As a result, you will have a significantly harder time gaining access to credit (whether in the form of credit cards, car loans, or home loans). Of course, this isn’t necessary a bad thing. Once you discharge your debts, you do not want to become a slave of the lending companies again. This time period can give you’re the opportunity to get back on your feet.
To determine if you really need to file bankruptcy, we highly recommend you contact a reputable credit counseling service. Please stay away from debt consolidation companies; these companies will simply ruin your credit.
If you would like more information about bankruptcy, feel free to visit the Dayton Lawyer Guide.
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