Are you beginning to realize that your financial situation is more serious than you once thought? If you find yourself searching for answers but never making progress, you'll want to learn more about Chapter 7 bankruptcy.
Even though it's a last resort for most people, there's nothing wrong with better understanding how to file for Chapter 7 bankruptcy and what you can get in return.
Here are some of the top reasons to file for Chapter 7 bankruptcy:
- The fresh start you're looking for. If you often think about what it would be like to start fresh in regard to your finances, Chapter 7 bankruptcy can help get you to that place. You may not be able to wipe out all your debt, but there's a good chance you can eliminate most of it.
- No repayment plan. With Chapter 13 bankruptcy, the law requires you to repay some or all of your debt through a repayment plan. This means you don't get to keep all your income in the future. There is no repayment plan for Chapter 7.
- No cap on how much debt you can have. There is no limit on the amount of debt you can discharge through Chapter 7 bankruptcy. This is an advantage over Chapter 13, which has a limit in place.
- It's a fast process. Although there's a lot required of you, as long as you're on the ball, your case can move forward in a fast and efficient manner. It's possible that the discharge of debt can happen within two to three months, thus giving you the fresh start you're looking for in the near future.
Even with these reasons in mind, you shouldn't file for Chapter 7 bankruptcy until you first consider all your options. For example, you may be able to work out a payment plan with your creditors, which makes it easier to stay afloat month after month.
If you come to find that Chapter 7 bankruptcy is the best way to fix your finances once and for all, learn more about the process, your legal rights from start to finish, and what you need to do afterwards to prevent the same type of trouble.