The idea of filing for bankruptcy often garners a lot of apprehension and fear. Among the questions that may go through your head are: Am I failure? Will I lose everything? What will my future look like?
While these concerns are certainly normal, it is important to understand that filing for bankruptcy has many benefits if you are facing insurmountable debt. Read on to learn seven benefits of filing for Chapter 7 bankruptcy.
- Unlike Chapter 13, there is no limitation on the amount of debt you can be relieved of by filing Chapter 7. All of your unsecured debts, which include credit card debt and medical debt, will be relieved.
- The process is usually quick. It may only take a few months to complete your bankruptcy and be relieved of your debt.
- You do not have to repay creditors. Chapter 13 requires that you repay creditors as much as you can. In Chapter 7, your debts are wiped clean.
- Harassing calls will end. As soon as you file for bankruptcy, creditors must stop contacting you.
- You keep the income and assets you acquire after filing. Although some property you acquire within 180 days of filing may be included in your bankruptcy, most will not be included.
- It is a responsible way to discharge debt. Filing for bankruptcy can show that you are serious about getting your finances back on track.
- You get a fresh start. Although you cannot discharge all debts in bankruptcy, you can discharge most, giving you the freedom to start over.
Bankruptcy exists to help people who are facing overwhelming debt — often through no fault of their own. Do not be embarrassed or ashamed to file for bankruptcy. Instead, talk to an experienced bankruptcy attorney who can help make sure you file correctly and in a way that is most advantageous to you.
FindLaw, “Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13,” Accessed May 29, 2015