There is no shortage of reasons to file for Chapter 7 bankruptcy. While you shouldn’t do so on a whim, as this is a big decision, it could be just what you need to regain control of your finances and put yourself on the path to a better future.
Here are some of the main reasons to file for Chapter 7 bankruptcy:
- Rid yourself of debt: The ability to discharge debt through Chapter 7 bankruptcy is one of the primary benefits. By doing this, you end up in a better financial position. You no longer have to worry about debts, such as large credit card balances, weighing you down.
- It’s fast: When you file for Chapter 7 bankruptcy, you can expect the entire process to take somewhere in the range of six months. There are exceptions, but things typically play out quickly. This is in comparison to Chapter 13 bankruptcy, with its repayment plan lasting as long as five years.
- Stop foreclosure: If you receive a foreclosure notice from your lender, it’s imperative to take immediate action. Neglecting to do so puts your home at risk, and that’s not something you want to do. The automatic stay freezes out your lender for the time being, ensuring that they’re unable to proceed with the foreclosure process. This gives you enough time to regain your footing and decide what to do next.
- No repayment plan: Chapter 13 bankruptcy requires that you repay some of your debts through a repayment plan. You don’t have to deal with this in Chapter 7 bankruptcy. All future income is yours to keep, which allows you to start your post-bankruptcy life on the right foot.
These aren’t the only benefits of filing for Chapter 7 bankruptcy, but you’re likely to realize that they’re among the most important to your current and future finances.
Should you realize that Chapter 7 bankruptcy is the right decision, learn more about the process and how it will affect you. Once you know where to start, what to expect and how to protect your legal rights, you’re in position to file and take advantage of the benefits.