If your finances are a wreck and you qualify for Chapter 7 bankruptcy, it never hurts to learn more about the process and how it will benefit you. As you become familiar with the benefits, you may soon realize that a Chapter 7 bankruptcy is the best way to reset your finances with an eye toward a more stable financial future.
Here are three of the best reasons to choose Chapter 7 bankruptcy:
A fresh start: The primary benefit of Chapter 7 bankruptcy is the ability to discharge some of your debts. By doing so, you’re given a fresh start. This allows you to rebuild your finances from the ground up.
No repayment plan: With Chapter 13 bankruptcy, you’ll handle your debts through a repayment plan. This lasts three to five years, meaning that you don’t have access to all your income. However, with Chapter 7 bankruptcy, you keep all future income.
No debt limitation: No matter how much debt you have, you can still file for Chapter 7 bankruptcy. This is another contrast between Chapter 7 and Chapter 13 and one that allows many people to file.
Along with the above reasons, another advantage of the Chapter 7 bankruptcy process is that it typically resolves within five to six months. Furthermore, the discharge of debt usually happens within two to three months.
Even if you’re just exploring the idea, take the time to learn more about the benefits of Chapter 7 bankruptcy and the process as a whole. Once you do this, you’re in better position to make an informed and confident decision. An experienced bankruptcy attorney can provide valuable guidance and information.