If you realize Chapter 7 bankruptcy is the best way to improve your finances, it won’t be long before you’re learning more about the process and focusing on the next steps.
Before you can make a final decision, it’s a must to understand the benefits of Chapter 7 bankruptcy. Here are a few of the best:
- A fresh start: Once your Chapter 7 bankruptcy is complete, a good portion of your debt is gone for good. This gives you a fresh start, thus allowing you to better plan your finances in the future.
- No repayment plan: The biggest concern with Chapter 13 bankruptcy is the repayment plan that lasts three to five years. With Chapter 7 bankruptcy, you get to keep all the income you earn in the future.
- No debt limit: It doesn’t matter how much debt you have, you can file for Chapter 7 bankruptcy as long as you pass the means test.
- It’s fast: A Chapter 7 bankruptcy discharge typically occurs within two to three months of filing. With Chapter 13, the repayment plan means that you’ll be dealing with this for a minimum of three years.
Although there are many reasons to file for Chapter 7 bankruptcy, it doesn’t necessarily mean that you should do so. However, after learning more, you’re in a better position to make a confident decision.
A Chapter 7 bankruptcy filing is a serious decision. Learn more about the process, focus on the benefits and decide if it’s the best way for you to improve your finances both now and in the future.