Whether you have lost a primary source of income or accrued an overwhelming amount of debt, filing chapter 7 bankruptcy may be the right decision for you and your financial future. Unfortunately, most people do not have a real understanding of the bankruptcy process and benefits. Here are a few practical benefits that you will see after filing chapter 7.
Clean Slate
First and foremost, it is essential to know that chapter 7 gives you a clean slate. This liquidation type of bankruptcy wipes out all of your debt, allowing you to make a fresh start when it comes to your finances.
While chapter 7 bankruptcy will discharge most of your debts, you may still be responsible for paying certain expenses, such as student loans, child support, and alimony. Your attorney will help you create a budget that will allow you to continue paying these expenses in a timely and efficient manner.
Property Protection
You will be able to keep all income and property that you acquire after filing since this property and income will not be part of the bankruptcy agreement. All income and property acquired after 180 days of filing will be protected.
No Limits
If you file chapter 13, there are limits to the amount of debt that can be discharged. When you file chapter 7, there are no limits on the total amounts of discharged debt as long as you pass the means test.
No Repayments
Filing chapter 7 bankruptcy will liquidate your debts, meaning you will not have to make payments towards the total debt. This process is different from chapter 13 where you will be responsible for making payments each month to pay off balances. After filing chapter 7, you are no longer responsible for making debt payments.
Effective and Fast
You may be surprised to learn how quickly debts are discharged once you start the process of filing chapter 7.
In most cases, your debts will be discharged within three months of filing. The courts will discharge your debts effectively and efficiently, reducing harassing calls and collections from creditors and decreasing any stress and anxiety you may be experiencing.
If you are searching for an effective and fast way to manage your financial future, chapter 7 might be the right solution for you.
Consulting an attorney should be your first step if you are considering bankruptcy. To learn more about the benefits of chapter 7 bankruptcy, contact Collins & Arnove in the Dallas, TX area at 972-516-4255 today.
Collins & Arnove | Chapter 7 Bankruptcy Dallas TX | 972-516-4255