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Can Chapter 7 Bankruptcy Get Rid of All My Debts?

A Fresh Start With Chapter 7 Bankruptcy

Chapter 7 bankruptcy serves as the most powerful debt control tool available to ordinary citizens.  While you should not look to file bankruptcy unless absolutely necessary, Chapter 7 can provide you with a fresh start to your financial life.  You can literally walk away from credit card bills, medical expenses, repossession deficiencies, old apartment leases and personal loans.  You can use Chapter 7 to cancel lease contracts, and to surrender that too-expensive car or house.

Chapter 7 bankruptcy exists because Congress recognizes that honest, hardworking people sometimes get into serious financial trouble.  Despite what an aggressive bill collector may tell you, Chapter 7 is legal, it is ethical, and it functions as a powerful financial tool that you can use.

Are You Stuck in a “Cycle of Debt?”

You may be familiar with the term “cycle of debt.”   A debt cycle arises when you incur debt with the hope and expectation to repay your obligations, but later discover that you simply cannot afford both your regular household expenses and your monthly debt service.  Minimum monthly payments on consumer debt rarely reduces the principal - you typically pay only interest.

Eventually a missed or late payment or a loss of income due to a family emergency leads to penalties, interest at twenty percent or higher and aggressive collection action against you.  Typically, when you fall behind with one creditor, news of your delinquency appears on your credit report and many of your other creditors will immediately increase your interest rate because of the change in your risk profile.

If you are trying to support your family on a modest income, a debt cycle crisis can lead to marital problems, school problems and can threaten your ability to provide food and shelter for your family.  Congress saw the need to make some form of relief available to you if you are caught in a debt cycle.

Learn About Your Options - Both Bankruptcy and Non-Bankruptcy

Clark & Washington bankruptcy lawyers can counsel you about your bankruptcy options.  Perhaps because it is such a powerful tool, Congress has tightened the qualification rules for filing Chapter 7 bankruptcy, and our firm has filed hundreds of Chapter 7 cases in Nashville and in other Tennessee cities.  Let there be no mistake - Chapter 7 relief still exists and for most people surviving on an modest income, you will most likely qualify.  And if Chapter 7 does not make sense for you, we can discuss a Chapter 13 bill consolidation plan as well as non-bankruptcy alternatives.

Chapter 7 bankruptcy may be the tool that empowers you to break your own cycle of debt.  If you are struggling to pay your bills, call us at 615-831-7003 for a free telephone or office consultation.  Bankruptcy is not always the right answer but you will not know if you do not call.
Clark & Washington, Attorneys, 237 French Landing
Nashville, TN 37228, Phone: 615-831-7003



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