If you are struggling financially, it may be time to consider how filing a bankruptcy could benefit you and your family. An individual who wants to file bankruptcy will either file a case under Chapter 7, Chapter 11, or Chapter 13. Each type of case has its own pros and cons to consider. This blog focuses on the benefits provided by a Chapter 7 filing:
- Once a Chapter 7 bankruptcy case is filed, the automatic stay is in effect, which prohibits creditors from taking any collection activity against you while your case is pending (unless a creditor obtains relief from the automatic stay).
- A Chapter 7 bankruptcy allows you to discharge most, if not all, of your unsecured debt. The most common examples of unsecured debt are credit cards and medical bills.
- The Chapter 7 process is quicker than the other types of bankruptcy filings. A Chapter 7 case can be over in as little as 3 months after it is filed, while the other types of personal bankruptcy can last for 3-5 years.
- Your legal fees and costs are typically lower in a Chapter 7 case.
- Although a Chapter 7 is a “liquidation” case, and there is some risk of losing non-exempt property, Chapter 7 debtors often keep most, if not all, of their assets.
The above are just a few examples of how a Chapter 7 case could benefit you and your family. Please keep in mind that every bankruptcy matter is different. If you are considering filing for bankruptcy protection, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 516-2566