Benefits Of Filing Chapter 7 Bankruptcy

Benefits Of Filing Chapter 7 Bankruptcy Chapter 7 bankruptcy is one of the commonly considered debt-relief choices available in the US. It helps people walk out of poverty and also offers them a clean slate. Filing Chapter 7 bankruptcy also gives a fresh start by eliminating most of your debts. However, filing it is solely personal and more importantly to determine whether it is the right option for you. This article will help you explore the advantages of filing chapter 7 bankruptcy and how an experienced bankruptcy attorney can help you with that.

Benefits of filing chapter 7 bankruptcy Immediate relief from most of your debts As soon as you file for chapter 7 bankruptcy, you get protection from your creditors. Filing bankruptcy also issues an automatic stay and stop all collections by creditors. This also mandates all garnishments, collection letters, and calls from your creditors must stop. This even puts a temporary stop to eviction, foreclosures, and repossessions.

Permanent debt relief When you file chapter 7, it wipes out most debt types, including medical bills, credit card bills, and personal bills. Filer’s obligation to repay these kinds of unsecured debts is eradicated when the bankruptcy court grants them a discharge.

Elimination of your debts is virtually guaranteed If you have never filed for bankruptcy before, you have to qualify means test and be honest about all your assets and current financial conditions. Chapter 7 bankruptcy discharges your debts in as little as three months. If you successfully meet all the requirements before, during, and after filing bankruptcy, debts elimination is basically guaranteed.

You may get to keep your assets Of more than 95 percent of people, who file for chapter 7 bankruptcy get to keep their assets. That’s because the law is designed to protect certain properties – known as exempt property – from the creditors. Whether it is your watch, monthly social security check, or an original painting, if they are protected by an exemption, you will keep your property.

If you wish, you can even hold onto your car after filing for bankruptcy In this case, you have to pay for it. On the other hand, if you don’t wish to keep it, filing for chapter 7 bankruptcy enables you to walk out of the car loan in no time.

The filer keeps all future income Typically, the property a filer will acquire post bankruptcy doesn’t fall under bankruptcy estate. Certain property, however, a filer acquires within 180 days of filing bankruptcy will fall under bankruptcy estate.

This very rule is applied to assets from divorce settlement agreement or decree, inherited property, death benefits, or proceeds of life insurance policy.

Chapter 7 bankruptcy does not impose any restrictions on the amount of debt a filer should have, while chapter 13 disqualifies a potential bankruptcy filer if the amount of secured/unsecured debts exceeds the given limits.

To learn more about bankruptcy and how to efficiently file one, contact a bankruptcy attorney at Recovery Law Group.