If you're considering Chapter 7 bankruptcy, there's a good chance that your finances are in shambles. Even though you're frustrated with your situation, taking a few key steps will go a long way in getting back on track.
There are many advantages of Chapter 7 bankruptcy, including the following:
- A fresh start: Unlike Chapter 13, Chapter 7 gives you a fresh start within four to six months. You'll then have the opportunity to build the financial life you've been dreaming of.
- No repayment plan: With Chapter 13 bankruptcy, you'll repay some or all your debts through a repayment plan that lasts anywhere from three to five years. Chapter 7 bankruptcy doesn't require this, thus allowing you to keep all of your future income.
- Fast discharge of debt: The discharge of debt typically occurs within two to three months of filing for Chapter 7 bankruptcy. This immediate progress gives you peace of mind, making it easier to see that you made a sound decision.
- No debt limit: Chapter 13 bankruptcy limits the amount of debt you can have to qualify. Chapter 7 bankruptcy has no such limit.
With these details in mind, you can make an informed decision as to whether or not Chapter 7 bankruptcy is the right decision for you and your finances at the present time. An experienced attorney can also provide valuable guidance.
If you decide in favor of Chapter 7 bankruptcy, you should begin to collect all the necessary information required to file. This will put you in a position to proceed in a timely manner, thus moving you one step closer to a better situation.