When it comes to bankruptcy, there are many different issues to consider. Bankruptcy can be advantageous for all sorts of reasons, and we have discussed many on our blog. However, it is crucial to be aware of your unique financial circumstances, and how a particular bankruptcy option may affect you. For example, if you are struggling with debt that involves a cosigner, you should realize that Chapter 7 bankruptcy does not protect joint account holders from collection.
In some cases, people are able to maximize the benefits of bankruptcy by taking another approach, such as filing for Chapter 13 or Chapter 11 bankruptcy. In the event that you do not have any joint accounts which are delinquent, Chapter 7 may be the most suitable option for you. However, there are many other issues to take into consideration before moving forward.
In some cases, Chapter 7 is an ideal option for those who are buried in debt even if they have a certain amount of debt which involves a cosigner. You may want to discuss your options with your cosigner and figure out which approach to take. We understand how overwhelming bankruptcy can be for those who may not be very familiar with their options, especially when they are overwhelmed by unmanageable debt.
If Chapter 7 is the right approach for you, it is imperative to carefully review the ins and outs of this process and prepare for the different ways in which your life may be impacted. We cover other topics related to the Chapter 7 process on our website.