Chapter 7 Bankruptcy May Not Always Be the Best Debt Relief Plan

Chapter 7 bankruptcy is not always the right solution for a debtor.

Most debtors have a long list of questions when they make an appointment with a bankruptcy lawyer. Filing for bankruptcy is a complicated process, and people are concerned about how the decision will affect them and their credit rating. Making the right call to a qualified Iowa bankruptcy attorney will put many debtors’ fears to rest, says Iowa bankruptcy attorney Kevin Ahrenholz.

Most debtors who have made the decision to seek bankruptcy protection are aware of the enormous impact it will have in their lives, and know that in order to file without errors, they need the help of an experienced bankruptcy attorney. When making that first appointment to discuss filing with a bankruptcy lawyer, questions to ask may include whether or not filing is feasible, how important is a credit report, how to rebuild credit later, and whether declaring bankruptcy will eliminate all outstanding bills.

Not everyone is eligible to file Chapter 7 bankruptcy, Ahrenholz explained. Some debtors may need to file Chapter 13, and others may need to take care of their debt in another manner. Each case, each person and each debt profile is different and is approached that way by an experienced bankruptcy attorney. The only way to know with certainty whether bankruptcy is the best debt relief plan, and what Chapter of bankruptcy to consider filing, is to speak with a qualified bankruptcy lawyer.

Many people also think that when they declare bankruptcy that all of their debts will be erased. In some instances, this does happen. In others, some debt remains. This is another reason why it is vitally important to speak to a competent bankruptcy attorney who will help to determine whether debts are dischargeable. There are instances where some of the debt is ineligible for discharge; non-dischargeable debt includes, but is not limited to, student loans, child support, and back taxes. Criminal fines are also not dischargeable.

If a debtor’s creditors are mainly for student loans, back taxes, and/or child support, then filing for bankruptcy may not be the best debt relief plan, and there may be alternatives to pursue. In order to make an informed decision, schedule a frank discussion with a qualified bankruptcy attorney.