Even though you hope it never happens, there could come a time when you have no choice but to consider filing for Chapter 7 bankruptcy.
You’ve tried everything else, from credit counseling to altering your budget, and you just can’t make any progress.
Fortunately, you can learn more about Chapter 7 bankruptcy as a means of providing guidance in the days and weeks to come.
Not everyone qualifies for Chapter 7 bankruptcy, so you may need to learn more about Chapter 13 as well.
Here are some of the top benefits of Chapter 7:
- A fresh start once the bankruptcy process comes to an end, which typically takes four to six months. There is no repayment plan, unlike Chapter 13.
- All future income is yours. With Chapter 13, a repayment plan means that you have to give away some (or most) of your future income for a period of three to five years. This is never a concern with Chapter 7.
- No limit on how much debt you can have. This is another difference between Chapter 7 and Chapter 13, as there is no amount of debt that will make you ineligible.
- It’s fast. Did you know that the discharge of debt could occur as quickly as three months? This goes a long way in putting your mind at ease, as you know there is an end in sight.
These may not be the only benefits of Chapter 7 bankruptcy, but they are definitely among the most important. You need to keep these in mind as you consider the best way to improve your financial situation.
Once you learn more about the Chapter 7 process, turn your attention to your personal financial situation. This will help you decide what to do next and how to make decisions that put you in a better position.
When you focus on the benefits of Chapter 7 bankruptcy, it’s much easier to realize that this could be the best answer to your financial problems.