For many, New Year’s Day is a time to reflect upon the past year and consider making certain improvements. For some those changes involve diet and exercise but, for many others, those changes relate to spending and saving habits. Many people would like to save more money but find that they cannot. Holiday shopping can be hard on the feet, the wallet and your credit card accounts. Resolving to make more reasonable spending decisions is a wise and healthy goal but what kinds of spending can you eliminate?
If you have maxed out your credit lines, even making the minimum monthly payments can drain a substantial portion of your income. Further, making the minimum payments alone results in very long repayment periods and interest payments that, over time, can eclipse the original amount that you actually charged to the cards. Worse, as you diligently attempt to make the minimum payments, your credit score remains low because your debt to income ratio is so high. You are an honest person and you’ve always attempted to repay your creditors but you owe it to yourself to consider whether chapter 7 bankruptcy might put you in a better position to reach your financial goals of saving, purchasing a car or a house and building retirement accounts. Chapter 7 bankruptcy is not the end.
What to Expect From Your Chapter 7 Bankruptcy in Pittsburgh.
In a simple chapter 7 bankruptcy case, you report all of your income, assets, expenses and liabilities together with other relevant financial information to your bankruptcy lawyer. Your bankruptcy lawyer will prepare schedules and a statement of financial affairs for your review. You must make sure that information is complete and accurate before you file it. The chapter 7 trustee and many of your creditors will be reviewing that information so it is important to be as complete and accurate as possible.
Before you file your bankruptcy case, you must complete a pre-bankruptcy credit counseling session with an approved credit counseling agency. That session can be completed online, over the telephone or in person.
After you have a filed your bankruptcy case, you will be scheduled for a meeting of creditors to be presided over by a chapter 7 trustee. The trustee is not a judge and the bankruptcy judge will not be in the room during the meeting of creditors. While all creditors are given notice of the meeting and permitted to ask you questions during the meeting, for most consumer debtors, no creditors will appear. Your bankruptcy attorney will appear with you at your meeting of creditors and, if you have questions or concerns, that bankruptcy lawyer will assist you through the process.
After the meeting of creditors, you will need to take one more course in personal financial management. That course can also be conducted in person, by telephone or via the internet. While there is other work for your bankruptcy attorney along the way, for most chapter 7 bankruptcy debtors, all that remains to be done after the personal financial management course is to await a discharge.
How a Chapter 7 Bankruptcy Discharge Can Improve Your Financial Position.
It is true that a chapter 7 bankruptcy case can be harmful to your credit. However, for people who have already suffered a drop in their credit as a result of high credit utilization, low debt to income, late payments, credit defaults and lawsuits from creditors, that hit to your credit score might be good medicine for your long term credit. When your debts are discharged, you no longer have any legal obligation to pay them. This means your capacity to take on new debt is higher. It also means that you could have the ability to save more of what you earn. Reducing your debt and timely paying your obligations after your chapter 7 discharge can result in an impressive credit score improvement. Many debtors are surprised by just how quickly their credit scores rebound after a chapter 7 bankruptcy discharge.
Get Your Fresh Start Through Chapter 7 Bankruptcy in Pittsburgh Now!
You owe it to yourself and your family to improve your financial position. While chapter 7 bankruptcy is not always the most sensible strategy, it very often is. The best way to find out whether a chapter 7 bankruptcy case could improve your financial health is to seek a free initial consultation with an experienced Pittsburgh bankruptcy lawyer today.
Chapter 7 Bankruptcy in Pittsburgh
Pittsburgh Bankruptcy Attorneys
We are a debt relief agency. We help people file for relief under the United States Bankruptcy Code.