Major Changes in Income can Lead to Chapter 7
A chapter 7 bankruptcy is for people that has had a major change in there income. The change could be from a change of jobs, an illness, and or a divorce. Once these changes happen you are no longer able to pay the bills that before were no problem. In some case not only the unsecured debts like credit cards and medical bill are discharged but the secured debts like the car and home needs to be surrendered because the income is so low can’t afford to keep making the payment. If you can afford to keep making the payments then they are fine meaning you will not lose them.
The chapter 7 bankruptcy is on your credit for ten years but that doesn’t mean you have bad credit and can’t buy cars and house for the next ten years. Once your income levels out now you are in a position to start rebuilding your credit. You will start receiving new credit cards, A car purchase will be possible but the interest rate will be higher so have a down payments to have a barraging chip to receive the best deal. This would be the same for the purchase of a home in about a year or so.
Remember filing the bankruptcy does not mean you have bad credit. You’re filing because you already have bad credit.
If your income has gone through a major change talk to a Bankruptcy Attorney to see how the bankruptcy laws can help you.
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