Not everyone will qualify for Chapter 7 bankruptcy, but if you do, it's something to think about. It's not always the right choice, but there are enough benefits that you should at least have it on your radar if your finances are in disarray.
Here are some of the top benefits of filing for Chapter 7 bankruptcy:
- The ability to obtain a fresh start in regards to your finances. Once your Chapter 7 bankruptcy case is complete, you're in position to start from scratch.
- It's fast. While not always the case, a Chapter 7 bankruptcy discharge typically occurs within two to three months of filing. This gives you peace of mind, as you know there is an end in sight.
- No repayment plan. With Chapter 13 bankruptcy, a repayment plan eats away at future income. You don't have to concern yourself with this when you file for Chapter 7 bankruptcy.
- No limit on the amount of debt you can have. Unlike Chapter 13, there is no debt cap that could hold you back from filing.
There are many other benefits of Chapter 7 bankruptcy, but these are the ones that help show why it could be the best strategy for you at the present time.
If you decide that you want to move forward, take the time to learn more about the process for doing so. Once you know what's expected of you, make sure you qualify for Chapter 7 bankruptcy and then push forward. It can be stressful, but when everything is said and done, you'll be in a much better place.
Source: FindLaw, "Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13," accessed April 26, 2018