With so many benefits, many people turn to Chapter 7 bankruptcy if their financial situation takes a turn for the worst. While it’s not the right solution to every money-related problem, it may be something you want to strongly consider.
Before you decide in favor of Chapter 7 bankruptcy, it’s critical to understand the benefits. Here are four of the best:
- A fresh start: Once your Chapter 7 bankruptcy case is in the past, you’ll feel like a new man or woman. A fresh start allows you to make better financial decisions the second time around, thus putting you in position to reach all of your goals.
- No repayment plan: While there are times when Chapter 13 bankruptcy makes sense, this calls for a repayment plan. This results in most of your disposable income being sent to creditors. Chapter 7 bankruptcy does not have a repayment plan component, thus allowing you to keep the money you earn.
- It’s a fast process: As long as you prepare accordingly and follow the steps outlined by the court, a Chapter 7 bankruptcy case typically concludes within six months of filing. Even better is the fact that the court will issue a discharge order within two to three months.
- No debt limitation: One of the primary concerns of Chapter 13 bankruptcy is the limitation on the amount of debt you can have. With Chapter 7 bankruptcy, there are no rules that impose a limit on how much debt you can have to file.
With these benefits in mind, you may find yourself interested in learning more about Chapter 7 bankruptcy. This is a good time to compare the benefits to any potential disadvantages, such as the impact on your credit report and credit score.
There’s nothing wrong with learning more about Chapter 7 bankruptcy, and then making a decision on what you should do next. Maybe you decide to move forward immediately. Or maybe you decide to wait a few months to see if your finances clear up.
The most important thing is that you understand the benefits of Chapter 7 bankruptcy, how it works and the steps you can take to file in Louisiana if the time comes.
Visit our website and read our past blog posts for more information on Chapter 7 bankruptcy benefits and what you can do to improve your financial life.