The Best Things about Choosing Chapter 7 Bankruptcy

If you have quite serious financial complications, this is the right time to think about bankruptcy filing. This step can be your only chance to have a fresh start. Basically, there are different options to choose from, but the main choice that many debtors make is whether it is worth filing Chapter 7 or Chapter 13 bankruptcy. You should check this content to be guided in the right direction.

Each option is effective to help you solve existing debt problems, but it makes sense to decide on Chapter 7 because of its multiple benefits. However, if you are faced with a foreclosure, Chapter 13 is your best solution. When you are not sure how to make this important choice, do not hesitate to contact experienced bankruptcy lawyers because their services are quite beneficial.

a hand that erases a "debt" word

  1. Getting faster results. As soon as you pass your means test, it becomes possible to qualify for Chapter 7 bankruptcy. This process is much faster, and it will take not more than only six months. This means that you can enjoy the necessary debt relief and start rebuilding your credit score in a timely manner, unlike Chapter 13.
  2. Not paying back your unsecured debts. The most widespread ones include personal loans, credit cards bills, and so on. Keep in mind that some debts, such as your student loans, child support and taxes, must be paid off.
  3. No repayment plan involved. Chapter 13 bankruptcy will require you to stick to this pre-set plan and make monthly payments to the credit companies you owe. Forget about that if you choose Chapter 7.
  4. Your future income is not used. That’s because all courts are more concerned with the income you made in the past six months. It is possible to save the money you will earn in the future, and it won’t be used to pay back your creditors because there is no repayment plan involved.
  5. Saving most of your valuable assets. Many people hesitate about filing for Chapter 7 bankruptcy only because they are afraid to lose their assets. You should not make the same mistake because most of them will be saved. The main reason is that they are exempt according to existing laws and regulations.
  6. More affordable legal fees. This type is associated with lower filing and processing fees, so that you will be able to save money in the long run, including the expenses of your lawyer.

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Posted by on Feb 25 2015. Filed under Legal. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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