subject: The Benefits And Dangers Of Applying For A Chapter 7 Bankruptcy [print this page] The Benefits And Dangers Of Applying For A Chapter 7 Bankruptcy
When a borrower is under financial stress and overwhelmed with debt he may be able to seek bankruptcy protection. Typically, there are two types of bankruptcy available to a debtor, a chapter 7 bankruptcy, and a chapter 13 bankruptcy. Each of the two classifications have different requirements for filing, which a borrower should be knowledgeable of. In addition, to the submission requirements the two chapters will differ on the protections afforded to the applicant. A competent Tampa bankruptcy attorney should review the facts of his client's case to establish which bankruptcy chapter is best suited. An incorrect or incomplete bankruptcy petition could create long-lasting consequences for the borrower.
One of the main advantages available to a borrower in chapter 7 is the discharge of the debts. A Chapter 7 bankruptcy discharges the borrower from personal liability for certain specified type of debts. In other words, the applicant is no longer required by law to pay any liabilities that are discharged. The discharge functions as a permanent order directed to the creditors included in the bankruptcy and requires them to refrain from proceeding with any form of a collection action on the discharged debts. The court order includes any legal action and contact with the applicant, such as telephone calls and letters. However, even though a borrower is free of personal liability for all accounts that are discharged, the creditor might be permitted to place a lien on certain assets owned by the debtor to try and acquire payment for the discharged liabilities. This is just one of the many reasons why you should schedule a free consultation with a experience Tampa bankruptcy lawyer for legal aid prior to tendering a bankruptcy petition.
If you are overwhelmed with debt you should call Florida Law Group for guidance. One of our Tampa bankruptcy attorneys may advise you of the advantages and potential hazards that connected with applying for a Chapter 7 bankruptcy. Our Tampa bankruptcy lawyers recognize these are tough times for you and we will work hard to develop a strategy to help you recapture financial stability and health.Call now for a free consultation with one of our knowledgeable Tampa bankruptcy attorneys.
