3 Reasons Why Chapter 7 Bankruptcy May Be For You
If you are in a tough financial situation and are considering filing for bankruptcy, you need to choose between filing for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy may be for you if you want the process to be quick and affordable, you are not looking to handle a repayment plan, and you meet the qualifying conditions.
Chapter 7 bankruptcy proceedings tend to be a quicker process than Chapter 13 bankruptcy proceedings. Once you start the proceedings, they can be over in a matter of a couple of months, with your debts discharged. This can allow you to get the creditors off your back faster and can allow you to quickly have a fresh start without any debt following you around.
Chapter 7 bankruptcy tends to cost less to file for than Chapter 13 bankruptcy. The longer nature of Chapter 13 bankruptcy increases the amount of legal assistance that you'll need, resulting in a higher overall bill. Chapter 7 bankruptcy, on the other hand, is a little more straightforward and faster, resulting in the need for less legal assistance and thus fewer bills.
With a Chapter 13 bankruptcy filing, a repayment plan is constructed that you have to follow for a number of years in order to repay your debts. Some of your debts are discharged, but for the other debts, you have to demonstrate over a period of multiple years that you are capable of handling the repayment process. Until you have finished the court-ordered repayment process, your bankruptcy proceedings are not really done.
With Chapter 7 bankruptcy, there are no payment plans. The court will decide what debts to discharge, and once they do, you are no longer responsible for those debts. Chapter 7 bankruptcy puts less responsibility on you over the long run in comparison to Chapter 13 bankruptcy.
Finally, it is important to realize that Chapter 7 bankruptcy is income dependent. You have to meet specific requirements in order to qualify to file for Chapter 7 bankruptcy. You have to meet a certain income threshold and you have to have a certain expense threshold to qualify for Chapter 7 bankruptcy. The criteria for Chapter 7 bankruptcy varies from one state to the next, so you are going to have to make sure that you actually qualify for Chapter 7 bankruptcy before you move forward with it as an option.
If you meet the qualifications for Chapter 7 bankruptcy and are looking for a quick, affordable, and straight-forward way to manage your debt and get a fresh financial start in life, talk to an attorney and a financial advisor about how Chapter 7 can help you get your financial life back on track.