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Financial Situations That Could Call For Chapter 7 Bankruptcy

On Behalf of | Jul 4, 2018 | Chapter 7 bankruptcy

Even though you do everything you can to keep your financial head above water, there could come a point when you have no choice but to file for Chapter 7 bankruptcy.

Before you make this important decision, it’s first important to review your situation to better understand your options. Here are some of the many reasons why Chapter 7 bankruptcy could be the right strategy for you at the present time:

  • You’re relying heavily on credit cards: There’s nothing wrong with using credit cards every now and again, but if this is your only means of paying for everyday necessities, you must change your ways.
  • You’ve received a foreclosure notice from your mortgage lender: This is scary, as it means the bank is getting closer and closer to repossessing your home. Fortunately, once you file for Chapter 7 bankruptcy, an automatic stay will give you some room to breathe.
  • Wage garnishment is reality: Depending on your situation, a lender may be able to garnish your wages in order to collect the money due to them. Just the same as foreclosure, a Chapter 7 bankruptcy filing can put an end to this for the time being.

While these are not the only reasons to file for Chapter 7 bankruptcy, they give you a clear idea of times when it may make sense.

If you find yourself thinking about Chapter 7 bankruptcy, it’s a good idea to learn more. You are not required to move forward, but there’s nothing wrong with better understanding the process, your legal rights and the many pros and cons associated with pushing forward.