Before you go filing for chapter 7 Bankruptcy in San Antonio, you must first know what you are getting into. Court proceedings always involve a certain amount of risk so you must be fully aware of what filing this case can get you. So here is a list of things you should know if you wish to file such a case.
- What is this?
This is a court procedure, included in the 7th chapter of the Federal Bankruptcy Code, which helps to pay back any unsecured debts (like medical debts or credit card loans) for people who are no longer financially (or in any other way) able to pay their own debts. This type of Bankruptcy Case is also known as liquidation bankruptcy as your property is liquidated, or sold off to repay your debts.
- How is this different from Chapter 13 Bankruptcy?
When filing for a chapter 7 Bankruptcy in San Antonio, you must, know your options. There is another type of bankruptcy case you can file which lets you slowly, but steadily pay your debts over an extended period which is both approved and supervised by the court. This is the type of bankruptcy included in the 13th chapter of the Federal Bankruptcy Code. But in chapter 7, instead of you repaying the debt over long periods of time, you surrender all your property along with your loans to the court, which then resolves the issue for you. Chapter 7 bankruptcy has lower fees than chapter 13, yet it is a more hassling works as the procedure will not start unless the entire fee is paid. On the other hand, it is quicker to start with chapter 13, and you can also pay the fee, slowly, over time.
- Can filing for bankruptcy be of any help with the creditors?
Well, this is the magic of law, my friend. The moment you hire your attorney for filing a chapter 7 Bankruptcy in San Antonio, the court implements a thing known as automatic stay which prevents any of those loans sharks from chasing after you and hunting you down to get their money out of you. They cannot block your salary, or ask for your car once this has been implemented.
- When to file for chapter 7?
Even if you incur some debts, it is always advisable to pay them by yourself if you are capable enough. A court procedure is an added headache, there are added fees involved and of course, there is also the possibility that your case does not receive approval in court and now you and in bigger trouble. So, there is no need to go filing for a chapter 7 Bankruptcy in San Antonio just because you are in debt.
Bankruptcy can hit anyone at any time for so many reasons, Be it large medical bills or sky-rocketing college tuition, or a plummeting stock market, going into debt can happen over a night or may have crept in slowly over generations.
Regardless of why you are in bankruptcy, if you have incurred any debt that is out of your ability to pay back, you should always leave it to the court to solve it for you.