Many of our readers in Escondido probably associate Chapter 7 bankruptcy filings with individuals and families who are struggling with their finances. However, what some people may not know is that Chapter 7 bankruptcy can also be pursued by businesses that have come to the determination that the best option in a bad financial situation is to file for this so-called "liquidation" bankruptcy and shut down the company.
In previous posts here, we have detailed how Chapter 7 bankruptcy is commonly known as "liquidation" bankruptcy - a process by which a debtor files a list of assets and debts with the bankruptcy court, and then the bankruptcy trustee sells off the assets in order to satisfy as much outstanding debt as possible. Other posts have covered the difference between secured and unsecured debt as well - secured debt being those debts that are tied to a possession, like a car loan, and unsecured debt most commonly represented by credit card debt. However, what some of our readers may have never learned about is the fact that some secured debts can be "reaffirmed" by the debtor in a personal bankruptcy.
Escondido residents who are exploring the possibility of filing for bankruptcy typically have a lot of questions about the process. Many will want to know how long the process can take. Others will want to know if filing for bankruptcy really will address all of their financial issues. And almost everyone will want to make sure that the debts they hold will be discharged.
As previous posts here have mentioned, the decision to file for bankruptcy is oftentimes a difficult one for individuals and families in Escondido. Filing for bankruptcy may be the last option for many people, a step only taken after all other possible financial remedies have been considered. Chapter 7 bankruptcy, in particular, can seem like a last-gasp effort to correct severe financial problems.
When Escondido residents are facing serious financial challenges, it can be a good idea to take things one step at a time to attempt to get to a solution. For many individuals and families, the first step is to get a full grasp of the entirety of the problems. Is there a lack of income? Are there unexpected expenses that are straining the household budget? Or, as is the case for many people throughout America, including in Escondido, is personal debt becoming an overwhelming hole to dig out of?
When Escondido residents look into the possibility of filing for bankruptcy, there may be more questions than answers at first. Chapter 7 bankruptcy, in particular, may inspire many different questions, as it is commonly known as "liquidation" bankruptcy. Questions can include the following: Will I lose my home? Do all of my debts qualify for discharge? Will I lose all of my credit cards if I file for bankruptcy?
Most people work hard in order to save up enough money to make a down payment when they purchase a home. For some, owning a home is a lifelong goal, and accomplishing that goal can lead to a tremendous amount of pride and a sense of fulfillment. But, for most people, such a purchase is also the largest financial transaction they will ever be a part of. And, owning a home isn't cheap. Besides the monthly mortgage payment, a homeowner is also responsible for property taxes and the costs of maintaining the home. In the end, all of the expenses involved in owning a home can be part of the reason why Escondido residents find themselves facing severe financial challenges.
When Escondido residents get to the point with their finances that they think it may be necessary to file for bankruptcy, they probably want to make sure they are making a financially sound decision. In reality, there are many good reasons to consider filing for bankruptcy.
There is no doubt about it: Escondido residents who are contemplating filing for bankruptcy are right to have questions about the impact of such an important move. Many people who have reached this point have explored all of their debt solution options and have come to the conclusion that the most appropriate option in a bad situation is Chapter 7 bankruptcy. At this stage of the decision making process, these individuals and families will find themselves in the same place as millions of others who have come before them.