It's best if you never have to consider a Chapter 7 bankruptcy filing, but there may come a point when you realize it's the only way to get back on solid ground.
While Chapter 7 bankruptcy isn't the right strategy for everyone facing financial difficulties, it's something to strongly consider. With knowledge of the many benefits, you may find that it's the best way to eliminate some of your debts and stabilize your situation once and for all.
Here are some of the many benefits of Chapter 7 bankruptcy:
- A fresh start: Chapter 7 bankruptcy gives you a fresh start, as you're able to eliminate some (or most) of your debts. While it doesn't affect student loans, tax debt, child support and alimony, it can still help with other forms of debt, such as credit cards.
- No repayment plan: Although there are advantages of choosing Chapter 13 bankruptcy, the repayment plan isn't one of them. With Chapter 7 bankruptcy, there's no repayment plan to worry about. You're able to keep all your future income, as opposed to using most of it to catch up on your debts.
- No limitations on debt: Chapter 13 bankruptcy has limitations in regard to how much debt you can have. Chapter 7 bankruptcy rules don't impose a debt limit, which makes it available to a larger number of people.
- It's fast: Typically, the discharge of debt in a Chapter 7 bankruptcy filing occurs within three to four months. The process, as a whole, usually wraps up within five to six months. This is in contrast to Chapter 13 bankruptcy in which your repayment plan will remain in effect for a minimum of three years.
Chapter 7 bankruptcy may or may not be the right choice, but you should at least learn more about the impact it can have on your finances.
If you believe that it's the right decision at this time, learn more about the filing process and the steps you can take in Connecticut to protect as many assets as possible. This is a big decision, so it's important to do whatever you can to protect your legal rights.
Visit our website for additional information on filing for Chapter 7 bankruptcy.