Cape Girardeau Bankruptcy Blog

Filing for Chapter 7 bankruptcy is different for everyone. Every bankruptcy case has its own unique circumstances. After all, there are many different factors that can prompt someone to go bankrupt.

Because bankruptcy is surrounded by such a powerful negative stigma, very few people openly discuss it. As a result, many people do not understand some of bankruptcy’s common causes. It can be helpful for debtors who are filing for Chapter 7 bankruptcy to know that they are not alone. In this post, we will take a look at five of the most common reasons for declaring bankruptcy.

John Smith (not his real name) began to receive collection phone calls after he went from a two-income household down to a one-income one. Then, John lost his job when his employer needed to reorganize. If that wasn’t bad enough, his wife took his hunting dog when she left. Yes, John is having a country music kind of year.

The thing about not being able your bills is how it can affect you. You start losing sleep, you don’t eat as much, and on many days, you just don’t feel like getting out of bed. John is suffering from financial stress.

When a person files for bankruptcy protection, it is not likely that they will face their creditors in court. They may not actually appear before a judge as well. However, they will certainly sit down with a bankruptcy trustee. This post will briefly highlight the trustee’s role in the bankruptcy process and explain some of the questions debtors may be asked during their meeting.

Trustees in Chapter 7 Bankruptcies

Many people struggle for years with high debt and aggressive creditors instead of pursuing bankruptcy. They may worry that declaring bankruptcy will ruin their credit, take away their car and maybe even their house. Losing a house is a particularly strong pain point. Homes are central to our lives – they carry special memories, provide shelter and represent a family’s unique personality.

The prospect of losing a home may keep some individuals from declaring bankruptcy out of fear. The idea of bankruptcy may be intimidating, but in reality it is a tool that helps people get out of debt and start over. What actually happens to a person’s house when they file for chapter 7 bankruptcy?