When Chapter 7 Is Not the Right Choice
Debt management can be a tricky undertaking for many Americans, but utilizing the tools offered by the bankruptcy system can make it possible to find a workable solution to almost any debt situation. Chapter 7 is often one of the most attractive forms of bankruptcy to debtors as it allows for large portions of your debts to be discharged, but it is not always the best solution for every unique debt situation.
At Hong Law, PLC, our legal team is committed to helping debtors make use of the bankruptcy system to effectively manage their debts and regain their financial independence. Whatever your debt situation is, call an experienced Cedar Rapids bankruptcy attorney today at (319) 632-1400 to learn more about your rights and options for relief.
Reasons to Look at Other Options
Chapter 7 is an excellent choice for individuals with limited amounts of property, limited income, and large amounts of unsecured debt. However, there are some situations in which Chapter 7 may not be the best choice for you even when you meet the eligibility requirements, such as the following examples:
- Your income is protected against legal actions, such as Social Security income, and all of your property is exempt. In such a situation, you are actually “judgment proof,” and there is nothing that your creditors can do to recover payment.
- You have large amounts of non-dischargeable or secured debts.
- You hold a significant amount of non-exempt property, which would normally be liquidated in a Chapter 7 bankruptcy.
In many of these situations, another form of bankruptcy, such as Chapter 13, may be a more appropriate way to approach your debt situation. An attorney will be able to help you determine which debt relief action is appropriate to your unique set of circumstances.
If your debts have reached a point where you believe you will not be able to repay them on your current income, it may be time to seek out the guidance of an experienced Cedar Rapids bankruptcy lawyer to learn about your options for debt relief in the bankruptcy system. For a free consultation to discuss the details of your case with our knowledgeable and understanding legal staff, call Hong Law, PLC, today at (319) 632-1400.