If you find yourself in a bad financial position, it's time to consider all your options.
While some people avoid bankruptcy at all costs, others have come to find that this is the best way to get a fresh start.
Most debtors prefer Chapter 7 bankruptcy over Chapter 13 for one primary reason: It allows you to discharge most of your debt. As a result, once the process comes to an end, you can hit the ground running without any concern about your past debts.
Here are some of the best reasons to file for Chapter 7 bankruptcy:
-- No repayment plan. With Chapter 13 bankruptcy, the court requires that you repay some or all of your debts via a repayment plan. This typically lasts anywhere from three to five years. With Chapter 7 bankruptcy, you don't have to concern yourself with this. Instead, once your case reaches completion, you can move on with your life. In other words, you get a "true" fresh start.
-- No limitations on how much debt you can discharge. Chapter 7 bankruptcy does not impose a limit on the amount of debt you can have. The same is not true with Chapter 13.
-- It's a fast process. While not always the case, a Chapter 7 bankruptcy discharge typically occurs within 60 to 90 days. Once unsecured creditors are satisfied, your case comes to a close and you can move on with your life.
These are just a few of the many reasons to file for Chapter 7 bankruptcy. As you learn more about this option, don't hesitate to also collect information regarding Chapter 13. With the pros and cons of both options in front of you, you can make a decision that will allow you to move forward with confidence.
There is no denying the fact that filing for Chapter 7 bankruptcy is a big deal, as this will change your life in many ways. Also, this is a complicated process, due to the fact that there are many laws in place and rules you must follow.
Since any mistake can lead to your Chapter 7 bankruptcy case being dismissed, it's important to know exactly what you are doing at all times. This is why many people opt to consult with an attorney. A legal professional can keep you on track from beginning to end.
Source: Nov. 30, -0001