Many people are hesitant to pull the trigger on a bankruptcy filing. People are really hoping to find a way to get out of debt without having to make the decision to file. For this reason, people in debt are very receptive to learn of the alternatives to bankruptcy. For some people, a great bankruptcy alternative is to work something out in terms of a small payment plan. Many creditors are willing just to get something in exchange for not having to file a lawsuit. If a creditor is willing to take $50.00 or $100.00 per month on the debt, that is probably a good move in the long run. If, on the other hand, you are overwhelmed with debt, then making a small payment plan with one creditor is not going to make a dent in your overall financial situation. If you are struggling financially with several creditors and several thousands of dollars, then I would recommend you file Chapter 7 bankruptcy.
Chapter 7 will eliminate just about all unsecured debt. For example, medical bills, credit card bills, utility bills, auto repossession deficiencies, mortgage foreclosure deficiencies, and debts for just about any other type of service are easily eliminated in a Chapter 7 fresh start bankruptcy.
There are some debts that are not eliminated in a Chapter 7 bankruptcy. Those debts that are not eliminated include student loans, recent taxes, parking tickets, child support, alimony, maintenance payments, debts caused by DUI, and debts incurred by some type of fraud. So although bankruptcy Chapter 7 does not eliminate every single type of debt that exists out there, it does eliminate the big debts that are out there. This is mandated by the Bankruptcy Code and makes up a big aspect of the bankruptcy process.
Imagine not having a credit card bill anymore. Imagine not having a medical bill anymore. These two items, credit card bills and medical bills, are the cause of over 80 percent of all Chapter 7 bankruptcy cases filed throughout the country. The cost of medicine has gone up, many people are uninsured, many doctors do not have any pity for people who do not have insurance and they will charge just the same price as if that person was having insurance. Doctors are frequently a part of Chapter 7 bankruptcy filings of my clients.
If you are questioning should I file for bankruptcy, make sure that you get your information from an attorney who knows the bankruptcy laws. Do not talk with an attorney who handles other areas of the law and takes a bankruptcy case every once in a while. The better choice would be an attorney who practices bankruptcy law every single day.