For many people facing seemingly endless debt, filing for Chapter 7 bankruptcy is the best option for getting their finances back on track. It’s important to know what the process entails, however, and in High Point, NC, Cecil & Cecil PA will assist you in filing. Not only can these attorneys afford reliable legal support, but they can also provide the information you need to make the best decision about handling your debt. Below, they answer some common questions about this particular type of bankruptcy.

Chapter 7 Bankruptcy FAQs

What Is Chapter 7 Bankruptcy?

Chapter 7, also known as liquidation bankruptcy, is useful for discharging most debts. Many people are forced to let go of personal property to satisfy outstanding debt amounts. During the Chapter 7 process, a debtor must pay a filing fee and undergo courses regarding proper finance management in the future. A bankruptcy trustee will oversee the case, and this person is responsible for selling property to pay off debts.  

Am I Eligible to File?

Not everyone is eligible for Chapter 7. You can tell by assessing your level of disposable income. If you’re unable to make payments on debt without impacting the quality of your life, Chapter 7 is most likely the best option for you. You can only file for Chapter 7 once every eight years, so those who’ve done so recently are also not eligible.

Can I Be Discriminated Against as a Result of Filing?

It’s illegal for employers to discriminate against workers due to their financial status. This includes firing an employee or treating a worker poorly because of they filed for bankruptcy. This is true of both private workplaces, as well as governmental entities. For example, you can’t get evicted from your residence or be denied work benefits because you filed.

Will Creditors Stop Harassing Me After I File?

Filing for bankruptcy triggers an automatic stay. That means any actions creditors are taking against you must cease. This covers everything from lawsuits to collections agencies calling and demanding payments. In some cases, an automatic stay may only be in place temporarily, after which creditors are free to resume contact.

When filing for Chapter 7 bankruptcy, it pays to have a seasoned legal team on your side. With 36 years of combined experience, High Point residents can rely on Cecil & Cecil PA. Learn more about your options by visiting them online today, and call (336) 883-8383 to schedule a consultation today.