When your finances are in good standing, you don’t spend much time, if any, thinking about bankruptcy. Conversely, if things take a turn for the worse, you may turn your attention to the bankruptcy process and everything it can do for you.
Even if you decide against it, it doesn’t hurt to learn more about Chapter 7 bankruptcy. As you come to better understand the benefits, you may soon realize that it’s the best way to clean up your financial situation. Here are some of the reasons to consider it:
- No repayment plan: The repayment plan associated with Chapter 13 bankruptcy is enough to scare many people away. But with Chapter 7 bankruptcy, you don’t have this concern. There’s no repayment plan, so you keep all your future income.
- No limitation on your debt: Chapter 7 bankruptcy laws don’t impose a limit on how much secured or unsecured debt you can have. Regardless of your situation, this won’t stop you from filing.
- A fresh start: It’s frustrating to watch your financial situation go down hill. You may soon find yourself wondering if there’s a way to make things right again. While you have several options, Chapter 7 bankruptcy is often the best for those who want a fresh start. Once you discharge all or most of your debt, you can build the financial life you want from the ground up.
- It’s a relatively fast process: Overall, Chapter 7 bankruptcy typically takes four to six months from start to finish. However, the actual discharge of debt generally occurs within the first 90 days. Yes, you’re likely to feel some stress during this time, but you know that there is light at the end of the tunnel.
You shouldn’t decide for or against Chapter 7 bankruptcy until you understand the benefits, potential drawbacks and the process that you need to go through.
Once you have this knowledge, you can make an informed decision on what to do next. Should you decide in favor of Chapter 7 bankruptcy, you’ll know that things are sure to get better within the next six months. You just have to stick it out for a little bit longer.