While chapter 7 bankruptcy can alleviate your debt and get creditors off your back, it can also impact your credit for a longer time. Regardless, below are some of the instances when you can choose to file for this type of bankruptcy. Information can be found here.
Unbearable Minimum Payments
If your monthly minimums on credit cards and loans prove too much for your income, you could be in a difficult financial situation. Meaning you should file for bankruptcy, and chapter 7 is the best option for you. See here for information about Dischargeable and Non-Dischargeable Debts from Chapter 7 Bankruptcy Greenbelt.
Spending more than You Earn Regularly
In cases where you incur monthly debts with no end in sight and reduced expenditure on essentials, filing for chapter 7 bankruptcy could be an excellent option for you. You know debts gain interest making the amounts you owe more expensive every day.
Creditors and Debt Collection Agencies are Calling
When you delay repaying your loan, your creditor will begin making phone calls through collection agencies. An increase in the number of these calls from different agencies is a direct indicator that you need financial relief. Filing for chapter 7 bankruptcy will help you keep the debt collectors off your back.
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