The Top 3 Advantages of Filing for Chapter 7 Bankruptcy
When you are in over your head in debt, you may feel like you don’t have any options other than to work yourself to the bone and pay everything you can to your creditors, hoping that you can scratch and crawl your way out of the hole you’re in. Bankruptcy gives you an option to get out of that hole and to put your life on firm footing once again.
There are two types of bankruptcy: Chapter 7 and Chapter 13. However, Chapter 7 is what most people have in mind when they think about bankruptcy, and it is the type of bankruptcy that most people would choose if given the option. Take a look at the top 3 advantages of Chapter 7 bankruptcy Around Arizona and you’ll understand why most people prefer it:
It Offers a “Clean Slate”
Don’t you wish you could turn back time? You could go back to before you bought that car that ended up costing you so much in repairs. Or do you wish that you could just wave your hand and get a free pass after you’ve suffered some major setback, such as getting sick and running up a ton of medical bills? That’s kind of what a Chapter 7 bankruptcy does.
If you qualify for Chapter 7 bankruptcy, all of your unsecured debts can be discharged. That means that you can get rid of credit card debt, medical debt, and debt from all those payday loans you took out trying to get on top of your problem (but only making it worse). You don’t pay any of it, and you’ll never hear from one of those creditors again asking you to pay!
There are No Limits on Discharge
You can qualify for Chapter 7 bankruptcy no matter how much unsecured debt you have. In Chapter 13 bankruptcy, there are debt limits, and if you exceed them, you don’t qualify to file. You can owe your credit cards $100,000 and still qualify for Chapter 7 bankruptcy. And if you are approved, you can have the entire amount discharged! Imagine what your life would be like if you could rid yourself of those debts.
You Can Keep Your Money and Property
In a Chapter 13 bankruptcy filing, you will be put on a repayment plan. All of your income and assets will be evaluated to determine what you can pay. In a Chapter 7 bankruptcy, that assessment happens at the beginning of your family. If it is determined that you are able to pay toward your debt, you will be required to do so before the remainder is discharged. However, once the bankruptcy is discharged, you will not be required to continue paying anything. All of your income and assets will remain yours.
There are a few exceptions to this rule. If you come into a big inheritance, for example, within six months of your bankruptcy discharge, you may have to use some of that to pay your creditors. Your bankruptcy lawyer can help you understand the rules here if you are expected a big payout after your bankruptcy is expected to close.
Filing for bankruptcy can help you get free of the debt that has come to overwhelm you, but filing for Chapter 7 bankruptcy can get you there faster. Your debts are discharged in as little as a few months, unlike a Chapter 13 bankruptcy in Mesa which you have to pay for three to five years. Talk with an experienced bankruptcy lawyer to learn whether bankruptcy is right for you and which option would be best.
My AZ Lawyers can help you. We are a top bankruptcy law office serving clients in the Phoenix, Tucson, Glendale, and Mesa areas. If you think you may want to file for bankruptcy, we will help you learn more about the process, and we’ll review your finances to let you know how bankruptcy may help you. Our goal is to help you get the debt relief you need as quickly as you can give it. Call us today to talk with a bankruptcy lawyer and to learn more about your options for debt relief through Chapter 7 or Chapter 13 bankruptcy.
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