Chapter 7 liquidation is a legal procedure that helps an individual or entity to release debt by clearing all or some debt. The advantage of chapter 7 is that it gives a chance to the individual to start all fresh. However, those who file for chapter 7 and not for chapter 13 or 11 will lose some of their physical assets as well as damage their credit rating. This is the reason why people consider bankruptcy as the last option.
There is various documentation required during the filing of impoverishment. This is a lengthy process, especially when people are filing for chapter 7 of Bankruptcy Code. Thus, it is wise to hire bankruptcy attorneys who have specialized in this field. They have proper knowledge about all legal process, thus instead of wasting time, they start immediately.
People or company never think they’ll have to file for insolvency in future. However, circumstances make them face this situation. There are many reasons for which people file for chapter 7 bankruptcy –
- →No matter how good you’re with your expenses and bills, the moment there is any serious illness or accident in family your entire planning fails. These unavoidable circumstances put a person in huge debt, especially when they don’t have insurance.
- →During recession period, many people filed for bankruptcy because they lost their job. Even the unemployment benefits cannot cover all monthly payments for huge families.
- →During divorce, all assets are divided which might be a loss to both parties. Filing for chapter 7 of bankruptcy helps in starting al over.
- →Sometimes, people also file for chapter 7 to avoid foreclosure of their property. This is done to buy some time and get back to track to pay mortgage on time.
Filing for bankruptcy can be a case for anyone. People can in financial loss anytime. This happens in organizations only when the company is unable to retrieve money from their clients. Debts are cleared either by selling assets or by borrowing money. However, if you’re already in debt, then bankruptcy is the only option.
Denbigh Law firm, located in Yorktown, is known for their excellent service since 1982. Their main office is situated in Yorktown, but they provide service in Newport News, Hampton, Yorktown and Poquoson, Virginia. They have best bankruptcy attorneys Poquoson that help in getting rid from financial troubles. They may charge you a consultation fees but never provide misleading information.
Bankruptcy can happen with anyone. It just needs one traumatic event that can drag a person down. Filing for chapter 7 is a serious matter as it can let you lose your assets easily. Hire best attorney that can help you to start fresh with less loss.