Many of the people who filed for bankruptcy in the autumn of 2005 finally have the opportunity to get the true, fresh start they were seeking eight years ago.
CHICAGO, IL, October 17, 2013 /24-7PressRelease/
-- Eight years ago, much of America was suffering tumultuous times. Hurricane Katrina had just devastated the Gulf region and President George W. Bush oversaw passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Gripped with great uncertainty, hundreds of thousands of Americans impulsively filed for Chapter 7 bankruptcy before BAPCPA went into effect on Oct. 17, 2005.
For many, this eleventh-hour bankruptcy filing was done out of fear and misunderstanding about the effects of BAPCPA. In thousands of cases, the claimant filed for bankruptcy too early for his or her particular situation, consequentially accruing debt after his or her filing date and ending up in a deeper financial hole.
Because BAPCPA restricted an individual's right to file Chapter 7
bankruptcy to once every eight years, these unfortunate people lost homes and assets without having any preventative tools available to them.
Many of the people who filed for bankruptcy in the autumn of 2005 finally have the opportunity to get the true, fresh start they were seeking eight years ago. But, as these claimants know, it's important to make sure that the timing is right - and that Chapter 7 bankruptcy is the most appropriate means for a bright financial future.
What To Consider Before Filing For Chapter 7 Bankruptcy
The most important thing to consider before filing is whether Chapter 7 is the right tool for resolving your financial problems.
Chapter 7 bankruptcy is most often used for people who want to quickly wipe out unsecured debt and get a fresh financial start. There are drawbacks to filing for Chapter 7, as you may potentially lose valuable assets such as a home or vehicle.
Other things that merit consideration before filing for Chapter 7 bankruptcy include:
- Some debts are not dischargeable: Child support, student loans, spousal maintenance and newer income tax debts are nondischargeable.
- Your credit will be impacted; the Chapter 7 bankruptcy filing will appear on your credit report for 10 years, potentially affecting your ability to obtain a mortgage or auto loan.
- If you reaffirmed a debt with a creditor, it will not be dischargeable in bankruptcy.
- You will not be eligible to file for Chapter 7 bankruptcy again for eight years.
If you are considering Chapter 7 bankruptcy, do not try to hide money or assets by transferring them to a family member or a hidden account. Do not attempt to hide or destroy property in an attempt to defraud a creditor. These actions can add tremendously to your problems.
Above all, it's wise to contact an experienced Chicago bankruptcy attorney to discuss your financial situation. Most reputable bankruptcy lawyers in Illinois offer free consultations where you can meet and talk through things before deciding to file for bankruptcy or partner with an attorney.
It's important to make sure you set yourself up for future financial stability and a skilled bankruptcy lawyer can help you make all the right moves.