Does Chapter 7 affect a filer's future income?

As December comes to a close and the calendar moves closer to the New Year, it's not surprising that many in De Soto County would be thinking of the future. For those who are thinking about filing for bankruptcy and securing a truly fresh financial start, the future holds extreme importance. After all, the reason why many file for bankruptcy in the first place is to obtain debt relief and get on the right track financially.

Still, despite the many advantages of Chapter 7, those who file will probably have a huge number of questions before they get started. This is only normal, and it's beneficial to get one's questions thoroughly answered before filing. A Chapter 7 bankruptcy attorney in Southaven can be a resource that may prove particularly helpful this time of year.

One of the many questions that a prospective filer may have about Chapter 7 is whether or not a filer can keep the property they acquire and the money they earn after filing for Chapter 7. Typically, the property that an individual obtains after they have already filed for Chapter 7 is not included in the bankruptcy estate. There are exceptions, though -- for instance, usually a debtor must wait 180 days in order to acquire property that will not be considered part of the bankruptcy estate. Any property acquired before 180 days have passed might be part of the estate, so it may be prudent to discuss this matter with an attorney.

The 180-day stipulation applies to property obtained from a divorce decree, inherited property, death benefits, property from settlement agreements and even money paid out from life insurance policies. As with all forms of personal bankruptcy, Chapter 7 has the potential to dramatically change a filer's financial state. In order to maximize the benefits of Chapter 7 or Chapter 13, an attorney's advice can be relied-upon from the initial consultation to the discharge of debts.

Source: FindLaw, "Reasons to file for Chapter 7 bankruptcy instead of Chapter 13," accessed Dec. 26, 2015

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