The Top 7 Benefits of Chapter 7 Bankruptcy
Filing bankruptcy is not a solution that a hard-working individual wants to turn to when finances get out of control. The unemployment rate was greater than 5% in 2014, and this number can easily fluctuate higher within a few short years. As more jobs are eliminated or hours are reduced, people are forced into financial situations they were unprepared to handle. Fortunately, there are great benefits for people that choose to file Chapter 7 bankruptcy to relieve the burden of multiple past due accounts.
Put an End to The Phone Calls
Creditors are allowed to reach out to inquire about your payment every day of the week and at any hour. It can get overwhelming if you have multiple accounts that you are struggling to pay. As soon as bankruptcy is filed, an automatic stay puts an immediate stop to all of the harassing phone calls.
Bankruptcy Does Not Involve Your Future Income
The court is going to evaluate income for a period of six months before bankruptcy was filed. Anything made after that point is not included in the bankruptcy estate the way that Chapter 13 filing requires. There are a few rare exceptions that should be addressed with an attorney to ensure that your money is safe.
It’s Possible to Eliminate Your Debt and Still Keep Your Assets
Discharging debts does not always include the sacrifice of retirement accounts, home equity, vehicles, or expensive jewelry in most cases. Exemption laws allow filing bankruptcy without forfeiting all assets, if any at all.
There are No Payments or Complex Reports to Worry About in Chapter 7
When an individual files Chapter 13, the process is going to require monthly payments until debts are completely settled. Chapter 7 does not require any payments or submission of monthly income statements
There Are Two Ways to Qualify
People that do not fit within the median salary limit can qualify for bankruptcy through a processed called the Means Test. The process evaluates all income and expenses to determine if there is anything left to repay unsecured creditors. If there is little or no money remaining then the qualification for filing Chapter 7 bankruptcy is met.
You Rarely See the Bankruptcy Judge
A significant majority of Chapter 7 bankruptcy cases do not require an actual court appearance. A meeting with the bankruptcy trustee is absolutely mandatory during the creditor’s meeting, but otherwise most individuals are able to avoid spending any time in court.
You’ll Get A Fresh Start Financially
All valid debts will essentially be erased so that you can completely start over with new accounts. Bankruptcy is going to remain on the credit report for 10 years, but most responsible individuals are able to rebuild their credit rating within the same time-frame. Start slowly with high interest loans to prove that you are capable of being responsible with financial accounts.
Our attorneys are ready to help you move forward with a Chapter 7 bankruptcy filing as soon as you provide your contact information through the form.