When it’s time to declare bankruptcy, the two options available are either Chapter 7 or Chapter 13 bankruptcy. Even though both choices are effective means of overcoming debt and obtaining monetary independence once again, most people view Chapter 7 bankruptcy as the preferred option. In Chapter 7 proceedings, you do not pay anything to unsecured creditors, unless the court requires a liquidation sale of your nonexempt assets. The following are other advantages of Chapter 7 bankruptcy:
- You have a “fresh start”: Chapter 7 bankruptcy is designed to give debtors a new lease on life. Specific debt is eliminated, which can free you from having to pay for it.
- You are able to keep any future income: Once Chapter 7 is filed, whatever property you obtain after the filing will not be included in the bankruptcy estate. However, particular types of property acquired within 180 days, including life insurance proceeds, divorce settlements and inherited property, are considered as bankruptcy estate.
- Debt amount has no limits: Chapter 7 does not impose a limit regarding the amount of debt a filer may possess.
- No repayment plan: Under Chapter 7, you don’t have to repay any sort of debt in a court-approved repayment plan, as opposed to Chapter 13 bankruptcy.
- Shorter process: While Chapter 13 lasts between three to five years, Chapter 7 only lasts five to six months.
- Less legal fees: Compared to Chapter 13, Chapter 7 entails a shorter process, which requires the help of a qualified attorney for only five or six months.
If you are interested in filing for Chapter 7 bankruptcy, contact Gossman Law Firm, LLC, and schedule your free consultation today.