As you learn more about Chapter 7 bankruptcy, you'll find yourself facing the decision whether to push forward with the process or opt for another approach to improving your financial situation. It's never easy to decide in favor of Chapter 7 bankruptcy, as you understand that this will adversely affect your life in some ways. However, you don't want to let the fear of the unknown slow you down.
Here are some of the many advantages of Chapter 7 bankruptcy, as opposed to other strategies:
- A fresh start in the near future. Once your Chapter 7 bankruptcy case closes, you'll find yourself in position to start over from scratch. You may not eliminate all your debt, but you can certainly get rid of most of it.
- No repayment plan. There are times when filing for Chapter 13 bankruptcy makes the most sense, but doing so saddles debtors with repayment plans to settle some or all of their debts. Chapter 7 bankruptcy does not have this requirement, meaning that you don't have to worry about making this monthly payment for a period of three to five years.
- It's fast. While this may not always be the case, the discharge of debt typically occurs within three months. So, if you start today, you could find yourself without some or all of your debt in approximately 90 days.
- No limitation in regards to the amount of debt you can have. No matter how much debt you've accumulated, it won't be enough to disqualify you from filing for Chapter 7 bankruptcy.
These are the types of advantages that push many people toward filing for Chapter 7 bankruptcy. With these in mind, you can feel more confident that you're making the right decision.
There is a myth that filing a Chapter 7 bankruptcy will ruin your finances forever. But nothing could be further from the truth. Instead, this will improve your situation in the short-term so that you can live a better life in the future.
If Chapter 7 bankruptcy sounds like a good idea, focus on the benefits and learn more about the process as a whole. This will put you on the right track for responsible fiscal management.