Choosing To Declare Bankruptcy With Chapter 7 in Omaha

There are many life situations that can cause financial difficulty such as unemployment, chronic illness, serious injury, or unwise management of resources. When you have found yourself in a situation where you can no longer meet all of your financial obligations, you may be able to file bankruptcy under Chapter 7 in Omaha, which will help you get a new start with your payments on your mortgage, your car, your credit lines and many other bills. While it is not an easy decision to decide to file bankruptcy, once the decision has been made, it is important to find a bankruptcy attorney who can help you make the transition and get through all the legal processes as quickly as possible.

Chapter 7 bankruptcy is available for any U.S. citizen who lives or works in the the United States, or owns property here. This type of filing is considered a “straight bankruptcy” which means it is a basic liquidation of all your assets to pay off creditors and start over again. This excludes certain exempt assets such as liens, real estate mortgages and secured auto loans. After the assets are sold to repay creditors, most other types of unsecured debt are legally discharged, with the exception of child support, income tax, property tax, court fines, divorce payments and student loans.

The difficult part of filing for bankruptcy with Chapter 7 Omaha is that it stays on your credit report for 10 years after the date of filing. Although this can make it difficult to obtain some future credit options, an individual has to weigh the consequences of having high debt on their credit availability as well. In some cases it may make more sense to file Chapter 13 bankruptcy instead, effectively rearranging your debt and setting up a reasonable pay schedule to help yourself get back on your feet. With Chapter 13, an individual needs to repay all their loans but is given a time period and payment schedule that they can meet with their current income, and the filing stays on the credit report for only 7 years.

Deciding which type of bankruptcy to file can be difficult, and knowing whether you should choose Chapter 13 or Chapter 7 in Omaha can be a tough one. It’s important to find the right attorney to help you do just that. They will also be helpful with making hard decisions and helping you jump through the legal hoops necessary for whichever path you have chosen.