Losing a loved one is painful, and the financial burden makes it even harder. Many people fall into credit card debt because of medical bills and funeral costs. You are not alone, and there is help available.
At TAIEBLAW, we have helped more than 7,000 people in the past 34 years. Most people who file bankruptcy do so because of events outside their control. Life can be unfair, but the bankruptcy code exists to give honest people a fresh start.
How Bankruptcy Helped in This Case
Our client lost her husband and faced overwhelming debt. The good news was that she stayed current on her condo and mortgage payments. Her home also had little equity. Because of this, she qualified for Chapter 7 bankruptcy, which allowed her to erase her debt and start fresh.
If she had fallen behind on her mortgage, or if her home had more equity, she might have needed to file Chapter 13 to protect her house.
The Risk of Chapter 7 Bankruptcy
Many people don’t know the risks of filing Chapter 7. If your home has a lot of equity, the trustee may sell it to pay creditors. If you are only struggling with credit card debt and your property is exempt, Chapter 7 may work. But if you are behind on secured debts like a mortgage or car loan, Chapter 7 can be dangerous. You may lose your car or face foreclosure.
Another issue: once you file Chapter 7, you cannot dismiss the case on your own. To fix mistakes, you must ask the court to convert it to Chapter 13, and that can create legal complications.
Talk to a Bankruptcy Attorney Before Filing
Bankruptcy is not just about filling out forms. It is about protecting your home, your car, and your peace of mind. Always talk to a qualified bankruptcy attorney before you file.
If you have questions about Chapter 7, Chapter 13, or any type of bankruptcy filing, contact TAIEBLAW at 856-235-4994 or visit TAIEBLAW.COM.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for more than 34 years. He is board certified in consumer bankruptcy law by The American Board of Certification, accredited by the American Bar Association.
