When you make the decision to file for bankruptcy, you must decide between Chapter 7 and Chapter 13. If you currently have little to no disposable income, Chapter 7 may be the more favorable choice because it discharges most debt. Here are five good reasons to consider Chapter 7 bankruptcy:
You Will Not Have a Repayment Plan
One of the best aspects of Chapter 7 bankruptcy is that you are not required to pay back any of your debt. If you opted for Chapter 13 bankruptcy, you would have to pay back a portion of what you owe to creditors. Without any debts to repay, you have a chance to save more money and get your finances back in order.
It Does Not Take Long to Complete
As long as there are no major complications with your case, Chapter 7 bankruptcy will typically take four to six months to complete, according to Nolo. A Chapter 13 repayment plan, on the other hand, normally takes three to five years. If you choose Chapter 7 bankruptcy, you can put the case behind you sooner and get on with the rest of your life.
Your Legal Fees Will Be Less Expensive
The Chapter 7 bankruptcy process is a lot shorter than Chapter 13, so you will not have as many legal fees to worry about. Instead of having to work with a lawyer for a few years, you will only have to hire one for a few short months.
You Do Not Have to Lose Your Assets
Although there is always the possibility of losing your home and other assets during Chapter 7 bankruptcy, it is not likely. If you did not name your assets as collateral for a loan, the judge will most likely let you keep them.
You Can Start Rebuilding Your Credit Right Away
Because Chapter 7 bankruptcy only takes a few months and does not require a repayment plan, you can start recovering your credit rating right away. If you pay all of your bills on time, you can raise your credit score and become eligible for loans again.
As you can see, there are many positive aspects of Chapter 7 bankruptcy. To learn more about the process, you should set up an appointment with an experienced bankruptcy lawyer like Backus Law Group soon. He or she can give you more details about Chapter 7 bankruptcy and determine if you qualify or not.