If you find yourself in financial distress with concerns about your future, it may be time to learn more about Chapter 7 bankruptcy. It's not the best solution for everyone, but it's something to consider. After you learn more, you can then make a final decision as to whether it can benefit you now or down the road.
Here are the top benefits of Chapter 7 bankruptcy:
- A fresh start: Once the Chapter 7 bankruptcy process comes to a completion, you're in position to start fresh. While you can't discharge every type of debt (such as student loans), you can rid yourself of most of it. You then have more control of your financial future.
- No limitation on how much debt you can have: With Chapter 13 bankruptcy, there is a limit on how much debt you can have when filing. This isn't the case with Chapter 7 bankruptcy, which makes it easier for people who are swimming in more debt than they can handle.
- You keep all your future income: One of the biggest disadvantages of Chapter 13 bankruptcy is the requirement to repay some or all of your debts through a repayment plan. This means that you won't have much, if any, disposal income in the future. Chapter 7 bankruptcy doesn't work the same way, as there is no repayment plan.
- It's fast: Things can happen that slow down your case, but the discharge of debt in a Chapter 7 bankruptcy typically occurs within two to three months. A Chapter 13 repayment plan remains in effect for three to five years, thus leaving this hanging over your head.
- Stop foreclosure: Thanks to the automatic stay, you can stop the foreclosure process. This gives you time to regroup and implement a strategy for staying in your home.
With these benefits in mind, you may come to realize that Chapter 7 bankruptcy is the solution to most of your financial related problems.
If you're interested in taking control of your finances through Chapter 7 bankruptcy, learn more about the process and where you fit in. Once you find that you're eligible, there's nothing left but to file the necessary documents and work with the bankruptcy court throughout the process.