Law Office of Judith A. Descalso Law Office of Judith A. Descalso

Things to consider when thinking of filing for Chapter 7

Many of our Escondido readers who contemplate the decision of filing for bankruptcy are filled with trepidation. Some feel like they are evading their financial obligations in a shameful way, while others may be concerned about whether or not they qualify for bankruptcy at all.

Several years ago the bankruptcy code was changed. The changes made it quite a bit more difficult to file for bankruptcy under Chapter 7. Chapter 7 bankruptcy is commonly called "liquidation" bankruptcy, because both individuals and businesses can file under this part of the code and the same process applies: assets are sold to satisfy debts, and any debt that isn't paid off is discharged. For a business, a Chapter 7 bankruptcy filing usually means the enterprise is over. But for an individual, a Chapter 7 bankruptcy filing can mean a new beginning, and a life free from crushing debt burdens.

But still, the trepidation remains. For some people it is a big deal to even take the first step toward getting more information about the process. However, knowing that questions will be answered in a straightforward and understanding way by someone who knows what they are talking about can make that first step a bit easier.

Should you feel embarrassed about trying to determine whether or not you qualify for bankruptcy? Absolutely not. Millions of Americans file for bankruptcy every year in an attempt to rectify their financial situations and alleviate the stress that debt can cause. But you won't know whether or not you qualify for a Chapter 7 bankruptcy filing unless you get more information.

To learn more about how our firm's approach to your personal bankruptcy filing and your privacy, take a look at our overview of Chapter 7 bankruptcy.

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