As an individual facing mounds of debt, Chapter 7 bankruptcy may be the best way to regain control of your financial life.
Understanding the advantages of Chapter 7 bankruptcy, as compared to other options, allows you to make an informed decision on what to do next.
Here are four advantages that can help you regain control of your finances and get your life back on track:
- A fresh start: The primary benefit of Chapter 7 bankruptcy is the fresh start it provides. By eliminating some or all of your debt, you have a clean slate on which to build. Keep in mind that some debts, such as student loans and child support, are not typically discharged in Chapter 7 bankruptcy.
- No repayment plan: Chapter 13 bankruptcy has many benefits. It also has a repayment plan that remains in effect for three to five years. Chapter 7 bankruptcy doesn’t require a repayment plan, thus allowing you to keep all future income.
- No limitation on the amount of debt: Another big difference between Chapter 7 and Chapter 13 is that Chapter 7 has no limitations on the amount of debt you can have to file. This allows more people to take advantage.
- It’s a fast process: Overall, a Chapter 7 bankruptcy case typically comes to an end within five to six months. Even better, the discharge of debt usually occurs within 90 days of filing a petition with the court. This allows you to see the light at the end of the tunnel, which gives you the confidence necessary to proceed.
No one wants to file for Chapter 7 bankruptcy, but it’s a tool millions of people have used to improve their finances.
As you compare the pros and cons of Chapter 7 and Chapter 13, you can make an informed decision as to which one is right for you. Understanding the process, how it will benefit you and your legal rights in Tennessee is critical to your success.
If you decide to file, your finances will change for the better within six months. At that point, you have the fresh start you’ve been dreaming of. It’s then up to you to make the most of it.