It doesn’t matter why you find yourself in financial trouble, there’s only one thing on your mind: getting back on track as soon as possible.
Unfortunately, this is easier said than done. You may have dug yourself a hole so deep that it will take a long of hard work and patience to make any real progress.
And that’s why Chapter 7 bankruptcy is something to strongly consider. While it’s not the right choice for everyone, it could be just what you need to obtain a fresh financial start.
Generally speaking, the Chapter 7 bankruptcy process takes four to six months to unfold. At the end of this time, you’ll find that your finances have improved in many ways. Most notably, you were able to discharge some or all of your debts.
For example, if credit card debt is dragging you down, you can file for Chapter 7 bankruptcy and have it discharged. This way, post-bankruptcy, you’re not responsible for paying the money. You have a fresh start.
There are other benefits of Chapter 7 bankruptcy, including but not limited to:
- Keep your future income: With Chapter 13 bankruptcy, you’ll use some or all of your disposable income to repay creditors through a repayment plan. This isn’t the way Chapter 7 bankruptcy works. You keep your future income.
- Protect your home from foreclosure: If your bank is taking steps to repossess your home, Chapter 7 bankruptcy can stop the process for the time being. With the automatic stay in place, creditors are prohibited by law from collecting. This gives you more time to figure things out with hopes of staying in your home.
- No limitation on debt: Unlike Chapter 13 bankruptcy, there is no debt limit when filing for Chapter 7 bankruptcy.
If a fresh financial start is what you want, Chapter 7 bankruptcy is a good place to start your search. It’s fast, efficient and designed to help you improve your financial circumstances.
Once you learn more about the pros and cons of Chapter 7 bankruptcy, as well as your eligibility, you can make a final decision as to whether this is the best way to get back on track.