With an attorney’s help, you can use Chapter 7 bankruptcy in Corona CA as the first step to a better financial future
If you’re struggling with debt, Chapter 7 bankruptcy in Corona CA may be just what you need. When done properly with the help of a qualified bankruptcy attorney, Chapter 7 bankruptcy can help break the cycle of indebtedness and allow you to get a fresh start towards a brighter financial future. Here’s how it works.
Eliminate Unsecured Debts
Filing for Chapter 7 bankruptcy in Corona CA allows you to completely eliminate almost all your unsecured debts, with very few restrictions. An unsecured debt means any debt that is not backed by collateral that the creditor could seize in lieu of payment. So credit card debts, personal loans, medical bills, utility bills, judgments from lawsuits, debts from a small business venture, and tax debts are all examples of unsecured debt. If you qualify for Chapter 7 bankruptcy in Corona CA, you can eliminate all of these debts (with the exception of tax debts less than 3 years old).
Choose How to Treat Secured Debts
Secured debts are debts that are backed by collateral. The most common types of secured debts include mortgages and car loans. If you file for Chapter 7 bankruptcy, you get to decide whether or not you want to eliminate these debts. If there’s no way you can afford your car or mortgage payments even after eliminating all your other debts, you can simply turn the property over to the lender in order to end responsibility for payments. If you already have a lot of equity in the property, you may not want to do this. Fortunately, as long as you keep making your payments, you can keep the property and still use Chapter 7 to eliminate your other debts.
End Harassment from Creditors
Filing for Chapter 7 bankruptcy in Corona CA with the help of an attorney will instantly put an end to harassing phone calls from your creditors. Once you hire an attorney, your creditors will be required by law to direct all communications about your debts to that attorney. And once your bankruptcy filing is complete, your unsecured debts will be eliminated and creditors will have no more reason to pursue you.
Improve your Credit Score
Another benefit of filing for Chapter 7 bankruptcy is improving your credit score. As long as you have unpaid, past due debts, your credit score will suffer. But by eliminating these debts and practicing good credit habits in the future, you can improve your credit score. This will help give you a fresh start in your financial life and enable you to get new financing when you need it, as well as to pass background checks and rental applications that include credit screenings.
