If your financial situation continues to worsen, and you’re unsure of what to do next, take a step back and learn more about Chapter 7 bankruptcy.
While it’s not the right answer to everyone’s financial problems, it may be just what you need to regain control of your finances and feel better about the future.
Here are some of the many things you may like about Chapter 7 bankruptcy:
- A fresh start: With a Chapter 7 bankruptcy filing, you’re given a fresh start. Many of your debts are discharged, putting you in a better financial position. You may not be able to discharge all your debts, such as student loans, but you’ll definitely find yourself in a better spot after bankruptcy.
- No repayment plan: This is the primary difference between Chapter 7 and Chapter 13 bankruptcy. With Chapter 13, you’re required to pay back some or all of your debts over the course of three to five years. This means you don’t get to keep all your future income. Chapter 7 bankruptcy does not have a repayment plan component.
- It’s fast: Generally, the discharge of debt in Chapter 7 bankruptcy occurs within 60 to 90 days. Furthermore, the entire process typically comes to an end within four to five months.
These aren’t the only benefits of Chapter 7 bankruptcy, so you’ll want to learn more before you decide for or against it.
Also, take the time to compare the pros and cons of Chapter 7 and Chapter 13, as this allows you to make the best decision for your current situation and financial future.