Debt can be stressful and damaging to your life. If you have started to feel like there is no way out of the debt you are in, it might be time to call a local bankruptcy lawyer. According to Debt.org, the typical person filing for bankruptcy actually only makes about $30,000 annually or less. Many people are often hesitant to finally reach out to bankruptcy lawyers because it can seem like a last resort, but getting out from under the stress of crushing debt can be a great fresh start. Freeing up money from debt can make a big difference in your family's quality of life. From a bankruptcy lawyer, here's what you need to know about Chapter 7 bankruptcy.

What Is Chapter 7 Bankruptcy?

The way Chapter 7 bankruptcy differs from other forms of bankruptcy is that it can clear debts extremely quickly but at a fixed cost. A layman's name for Chapter 7 bankruptcy is a "fresh start" bankruptcy. All additional assets you may have, such as property that is not your residence or extremely expensive vehicles, may be sold to clear the debt. It's also called "straight bankruptcy" due to the swiftness of the entire process. It's severe, but it is meant to clear debt quickly.

What Role Does the Court Play?

The courts will do two things for you once you've filed for Chapter 7 bankruptcy. Firstly, the court will place a temporary stay on your debts. This means that by filing, you'll be able to avoid collection efforts, home foreclosure, wage garnishment, property repossession, eviction, and utility turn-off. In return, a court-appointed trustee will begin selling your nonexempt property and utilize the payments to pay back your creditors. 

What Is Exempt From Chapter 7?

Your exemptions will differ from state to state. In some cases, you may actually be able to choose what exemption rules you want to abide by: the state or the federal exemptions. To start, your primary residence is counted as an exemption as is your vehicle, as long as it's not overly expensive. This means that while working through bankruptcy, your entire life won't feel unnecessarily uprooted. You'll still have a home and a means to travel to work, to court, and anywhere else.

If you are in need of bankruptcy advice, please contact the Law Offices Of Rex J Roldan PC today. Our experts are highly knowledgeable about bankruptcy law and how to help you through this hard time. We look forward to hearing from you.