As you review your finances, you may soon come to the conclusion that you’re facing a long uphill battle. Even with the best intentions, you may find it nearly impossible to make efficient progress in a timely manner.
Should you find yourself in this position, Chapter 7 bankruptcy is well worth your consideration. Even if you don’t file right now, learning more about the process will help you make better decisions in the future.
Here are some of the many things a Chapter 7 bankruptcy filing can do for you:
- Protect future income: You want to use your future income to build the life you want. With Chapter 7 bankruptcy, unlike Chapter 13, there is no repayment plan. All future income goes directly to you as opposed to repaying creditors.
- Discharge of debt: Some debts are not dischargeable in Chapter 7 bankruptcy, such as student loans and child support, but most are. If you have more debt than you can handle, such as multiple credit card balances, you can discharge it in bankruptcy.
- No debt limit: Many people don’t qualify for Chapter 13 bankruptcy because they have too much debt. Under Chapter 7 bankruptcy laws, there is no limit on the amount of secured and unsecured debt you can have.
- A fast process: You don’t want bankruptcy to drag on. You want to file, go through the process and come out the other side in better shape. Chapter 7 bankruptcy allows you to do just that, with the discharge of debt typically occurring within 90 days of filing. This is in addition to a process that generally takes five to six months to complete.
These are just a few of the more important things Chapter 7 bankruptcy can do for you and your finances. If you’ve tried everything to escape your bad financial circumstances and continue to come up short, this may be the best solution.
If you decide in favor of Chapter 7 bankruptcy, learn more about the process, how it unfolds and your legal rights. You want to do everything you can to position yourself for success now, and more importantly, post-bankruptcy.