What are the advantages and disadvantages of filing for Chapter 7 Bankruptcy?

Filing for Chapter 7 Bankruptcy in New Hampshire can be a way for an individual to eliminate or drastically reduce their debt. An advantage of filing for Chapter 7 bankruptcy is that it can offer debtors a fresh financial start. After the process is completed, all debts are discharged, allowing debtors to start over. Additionally, creditors can no longer contact debtors or attempt to take collection actions. Another advantage of filing for Chapter 7 bankruptcy is that some assets may be exempt from seizure. In New Hampshire, up to $125,000 in equity in a homestead, as well as up to $10,000 in personal property such as furniture and clothing, can be excluded from liquidation. However, filing for Chapter 7 bankruptcy does have some disadvantages. For example, credit scores can be drastically affected by the filing of a bankruptcy. This could make obtaining credit in the future difficult. Additionally, many financial institutions do not allow individuals who have filed for Chapter 7 bankruptcy to open an account with them. Finally, filing for Chapter 7 bankruptcy does not discharge all debts. Certain types of debt, such as child support, alimony, student loans, and taxes, are not affected by the filing of bankruptcy. Therefore, debtors may still be responsible for paying those debts even after a Chapter 7 bankruptcy is completed. In summary, the advantages of filing for Chapter 7 bankruptcy in New Hampshire include the discharge of all debts and access to certain asset exemptions. However, the disadvantages include the potential for a damaged credit score and the fact that some debts are not dischargeable.

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What are the advantages and disadvantages of filing for Chapter 7 Bankruptcy?

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