Even if you owe a significant amount of debt, you may not consider bankruptcy as a reasonable option for you. Most people view bankruptcy as a negative process, and like others, you may assume that taking this step could have a negative impact on the rest of your life. In reality, bankruptcy could offer you many benefits, including the possibility of a stronger financial future, especially if you are currently facing insurmountable debt that you cannot manage on your own.
There are two main options for consumer bankruptcy — Chapter 7 and Chapter 13. Chapter 7 could be the ideal choice for your situation if you have a significant amount of unsecured debt. Due to its effectiveness in the discharge of certain types of balances and the short time it takes to complete, Chapter 7 is a popular choice for debt-burdened Georgia consumers. However, it will first be important to determine if you qualify for Chapter 7. Applicants must meet certain eligibility requirements.
Chapter 7 may not be the right option for you
Each financial situation is different, and Chapter 7 may not be the ideal solution for certain consumers. This is an attractive choice for some as it only takes a period of three to five months to complete. It is liquidation bankruptcy, which means there is a possibility you could lose some of your personal property if you move forward with Chapter 7. Reasons you may not qualify include:
- Your income is too high.
- You did not meet the requirement to seek credit counseling.
- An earlier bankruptcy filing discharged your previous debt.
- You have the ability to repay some debt.
- You had a previous bankruptcy case dismissed within the previous 180 days.
If you do not qualify for Chapter 7, you may be eligible for Chapter 13 instead. Either of these options could provide you with a way to confront your debt and move forward.
Seeking the best financial future
When you can no longer manage your debt, you may feel overwhelmed and unsure of how you will ever move forward. It will be in your interests to seek an understanding of Chapter 7 bankruptcy and whether or not it can provide you with the opportunity to deal with certain balances once and for all. An assessment of your debt, income and other financial details can help you understand which consumer bankruptcy option will be most effective for your situation.