Filing bankruptcy is a financial decision that should not be taken lightly. It's a decision to eliminate unsecured debts you have, such as medical bills, credit cards, and other financial debts. Chapter 7 bankruptcy, specifically, can take a long time to file and will affect your credit score. Because of this, consulting with a Chapter 7 bankruptcy law specialist before you undergo this type of financial change is very important.

Is this type of bankruptcy for you? Use this guide, along with the assistance of a financial advisor and a bankruptcy attorney, to help you determine what your next plan of action should be.

You Have Exhausted All Other Options

Chapter 7 bankruptcy is a way to eliminate debt and clear your financial slate, but it comes at a cost to your credit and other things. You don't want to make this decision lightly so you should do what you can try other alternative measures first, which your bankruptcy attorney will tell you about. Consolidating your credit is one of the things you can consider, along with using savings and other means to manage your debt.

If you have tried all other options for eliminating your debt and are finding yourself unable to address your financial concerns without sacrificing the necessities for your family, then bankruptcy may be right for you. Keep in mind that this type of bankruptcy will cost you money in legal fees and filing; discuss this with your Chapter 7 bankruptcy lawyer.

You Have the Right Kinds of Debt

Chapter 7 bankruptcy will not eliminate all your debts. For example, you cannot include back child support in a bankruptcy filing. However, you can include unsecured credit cards and certain medical expenses and even personal loans that you have fallen behind on, allowing you to get a fresh start and continue a new slate to clean up your credit and become more financially sound.

You Have a Financial Game Plan

You should have a financial game plan to help you get through your bankruptcy once you have filed for the legal action. You need to do what you can to ensure you don't fall behind on your financial responsibilities again, which should be somewhat easier because you won't be able to have easy access to credit cards and loan applications for some time after you file. Your Chapter 7 bankruptcy law expert will assist you in all your filing needs to help make bankruptcy an easier option for you.

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