If you are struggling financially right now, it is likely that filing for bankruptcy has crossed your mind. However, you may be unsure whether this is the right choice for you because you have heard horror stories, and you are overwhelmed by all of the options available.
If you want to finally become debt-free and you don’t want to wait a long time to achieve this, filing for Chapter 7 bankruptcy could be a great choice. However, not everyone can file for Chapter 7 bankruptcy, and it is not the right choice for every situation. The following is an overview of the circumstances in which Chapter 7 bankruptcy could be the ideal choice.
When you have a very low income or you’re unemployed
Chapter 7 bankruptcy is a process that is aimed at debtors who simply cannot afford to pay back their debts because they have a low income or no income at all. For these individuals, Chapter 7 will be easily accessible. However, if you have a high income, you may not be eligible for Chapter 7 bankruptcy, and filing for Chapter 13 bankruptcy may be a better option for you.
When you don’t have a high amount of assets
The process of Chapter 7 bankruptcy involves the liquidation of assets. This means that if you own large value assets such as a house or expensive cars, it is likely that you will have to liquidate them as part of the bankruptcy. For this reason, those with low-value assets tend to be more suited to Chapter 7 bankruptcy.
When you want to eradicate debts quickly
Filing for Chapter 7 bankruptcy is one of the quickest ways to eradicate debts. If successful in your filing, you would be debt-free in a matter of months.
Filing for bankruptcy is not the ideal choice for everyone, however, it can be life-changing for some. Find out whether you can eradicate your debts through Chapter 7 bankruptcy by understanding more about the law.