It’s not always easy to find that your finances are in a state of disarray, but there are many steps you can take to dig your way out of trouble.
For example, there are several good reasons to file for Chapter 7 bankruptcy. If you’ve looked into other ideas and nothing seems to make sense, here are some reasons why a bankruptcy filing could be just what you need:
- A fresh start: With Chapter 7 bankruptcy, you can eliminate most of your debts, thus providing you with the fresh start you’ve been seeking.
- Ability to keep all future income: With Chapter 13 bankruptcy, you’ll use some of your future income to make payments through a repayment plan. You don’t have to worry about this with Chapter 7 bankruptcy.
- You can have any level of debt: There is no limitation on the amount of debt you can have when filing Chapter 7 bankruptcy.
- It’s fast: With bankruptcy, you don’t want the process to drag on. You want to put it in the past as quickly as possible. While not always the case, a typical discharge of debt occurs within two to three months.
These are some of the better reasons to file for Chapter 7 bankruptcy. As you learn more, you’ll begin to better understand the process and whether or not it makes sense to move forward at the present time.
Once you know your legal rights and what to expect, you can decide if Chapter 7 bankruptcy is the best way to improve your financial situation in the near future.
Source: FindLaw, “Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13,” accessed May 10, 2018