As you compare Chapter 7 and Chapter 13 bankruptcy, you’ll come to find that there are pros and cons associated with each one.
While you need to learn more about both options, many people start out considering Chapter 7. Here’s why: It provides the opportunity to discharge most of your debt.
If you qualify for Chapter 7 bankruptcy, here are some of the many benefits you can take advantage of:
- A fresh start. Since you have the opportunity to free yourself from some debt, it’s much easier to start fresh once the bankruptcy process comes to an end. And this is exactly what many people are looking for.
- No limitations regarding the amount of debt you can have. With Chapter 13 bankruptcy, there are rules in regard to how much debt you can have to file. With Chapter 7, this never comes into play.
- No repayment plan. Chapter 13 bankruptcy requires that you repay some or all of your debt through a repayment plan that lasts three to five years. This doesn’t hold true with Chapter 7. Instead, the process will come to a completion within four to six months, at which point you can move on with your life.
- It’s fast. If you decide to file for bankruptcy, you probably want to put this process in the past as quickly as possible. Generally speaking, the discharge of debt occurs approximately two to three months after filing for Chapter 7 bankruptcy.
These are not the only advantages of Chapter 7 bankruptcy, but they are among the most powerful. With these guiding you, it’s much easier to get on board with the idea of filing.
Even though you’re in a difficult financial spot, there is help to be had. If you believe that Chapter 7 bankruptcy could work in your favor, learn more about the process and where you stand. This will ensure that you have a clear mind as you decide what to do next.