Many people are looking into chapter 7 bankruptcy as a viable way for them to be discharged of their debts. If you are swimming in debt, you might be wondering what you can do, if anything, to find relief. Luckily, chapter 7 bankruptcy may be an option for you. Here are a couple things you need to know.

Will I Lose My House If I Declare Bankruptcy?

This is a very difficult question to answer because it applies differently to each individual situation. For example, if you live alone in your house and your assets are over a certain amount, the trustee will probably sell your house and take the equity in the home to pay back some of your debts.

If you live in the house with your children and you don't have a lot of equity in the home, you might be able to keep the home, so long as you are making your payments on the house. It could also depend on the mortgage lender. They might have an opinion of if they want you to stay in the house, or if it would be better for them to sell the home, since you are not a profitable occupant.

How Do I Declare Bankruptcy?

This is a complicated process that can only be done with an attorney, such as Julie A Philipi Attorney at Law. When you meet with the attorney they will go through all of your debts, your financial situation, and much more to see if they believe you will qualify for bankruptcy. Even if the attorney thinks that you can qualify, they can't know for sure until they file with a judge. A judge will look over the situation and decide if you are able to declare bankruptcy.

In some cases they won't approve you for a chapter 7 bankruptcy, but they will approve you for chapter 13, which means you still make payments on the debts, but they are lower and more manageable. It all depends on your personal situation.

Are There Any Debts That Aren't Forgiven?

Yes, there are some debts that even if you are approved for bankruptcy will not be forgiven. Some of these debts include, alimony, child support, education loans and loans that you acquired after your financial situation was dire. For example, if you bought a car a week before you declare bankruptcy, this could be seen as fraudulent and that debt will not be forgiven.

These are just a couple things that you need to know about declaring bankruptcy.