If you are trying to decide if you should file for Chapter 7 bankruptcy, you must first decide if it makes financial sense. To start, you need to determine if your debts are mainly of the type that require a judgment, and if you have any property or income that can be seized by creditors if they obtain a judgment. If your property is exempt and your income comes from Social Security, your creditors will not be able to take anything from you and they probably will not go to the trouble of obtaining a judgment. If you find yourself in this situation, regardless of how much you owe, nothing bad will happen to you if you don't file for a Chapter 7 bankruptcy.
Chapter 7 bankruptcy does not discharge certain types of debts, and therefore it doesn't make sense to file for a Chapter 7 bankruptcy if your primary goal is to erase these nondischargeable debts. Nondischargeable debts include alimony obligations, back child support, student loans, recent debts for luxuries and more.
Overall, it can be tricky to decide whether or not a Chapter 7 bankruptcy is the right financial choice. A Westchester County bankruptcy lawyer from the Bronson Law Offices, P.C. can assist you in making the right choices for your case. Contact a Westchester County bankruptcy attorney today for answers to your debt questions and legal help with your current situation.