Pacific Attorney Group Articles Emerging From Chapter 7 Bankruptcy

Emerging From Chapter 7 Bankruptcy

By Pacific Law Group  May. 31, 2011 2:44p

In 2010, there were approximately 1.5 million bankruptcy filings, with the vast majority of individual bankruptcies filed being Chapter 7. Even with the 2005 changes to U.S. bankruptcy laws, the number of Chapter 7 filings continued to rise. Chapter 7 bankruptcy is a debt liquidation bankruptcy, where a majority of the person's debts are discharged or otherwise "erased." Chapter 7 bankruptcy is the shortest and simplest type of bankruptcy, where debtors can emerge with a discharged in approximately 3 to 6 months. If you are considering filing for bankruptcy, contact a Los Angeles bankruptcy attorney today.

The majority of people who file Chapter 7 bankruptcy, had little other options available to them. Most people who file for bankruptcy have already watched most, if not all of their debts go into default and, most people who file for bankruptcy, did so because of some major life-changing event, not irresponsible spending. Life-changing events such as a sudden job loss, a temporary lay-off, a pay cut or an elimination of overtime, a divorce or a medical emergency such as a cancer diagnosis are all examples of typical causes for financial turmoil. Bankruptcy has long carried a bad name, however, in today's current economic climate, record numbers of individuals and businesses alike are filing for bankruptcy protection and there is nothing to be embarrassed about.

Life Changes after Bankruptcy

In most cases, people's credit is already shot by the time they file for bankruptcy. Whether they have defaulted on their mortgage, their car payments or the remaining of their debts, their credit worthiness has already been severely compromised by the time they file for bankruptcy. Once a person files for bankruptcy, they are immediately protected from wage garnishment and creditor harassment from the "automatic stay" in bankruptcy. Freeing up ones wages and putting an end to creditor harassment can relieve a lot of stress for an individual.

Once a Chapter 7 bankruptcy is discharged, the debtor is released from the obligation of paying his or her medical bills, credit card bills, utility bills, personal loans and taxes over 3 years old. The one thing one may be surprised to find out about bankruptcy is that often times they can rebuild and re-establish their credit faster after bankruptcy, then if they chose to chip away at their debt over a number of years. If you would like more information about your bankruptcy options, contact a Los Angeles bankruptcy lawyer from the Pacific Attorney Group today!

Contact a Los Angeles bankruptcy attorney from our firm for a free initial consultation.

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