Although it's not always the case, many people would rather file for Chapter 7 bankruptcy than Chapter 13 if they find themselves in a difficult financial spot.
Once you learn more about the benefits of Chapter 7 bankruptcy, including the reasons to file, you may find that this is the best way to improve your situation.
Here are some of the top reasons to consider Chapter 7:
-- Start fresh in the future. Once your Chapter 7 filing comes to an end, you'll find yourself in position to start fresh without any concerns of what happened in the past.
-- No repayment plan. One of the biggest drawbacks of Chapter 13 is the requirement of repaying some or all of your debt through a repayment plan. With Chapter 7 bankruptcy, you don't have to worry about this.
-- No limitation on how much debt you can discharge. With Chapter 7 bankruptcy, there is no limit on the amount of debt you can have. With Chapter 13, however, this is not the case.
Along with the above, there's one last detail worth noting: the Chapter 7 bankruptcy process moves forward at a much faster pace. Generally speaking, you can expect your debt to be discharged within three to four months of filing.
If your debt is bogging you down, if you don't know what to do next, it may be time to consider Chapter 7 bankruptcy. If you find that you're eligible to file, this could be the best step you ever take in regards to improving your financial situation.
Source: FindLaw, "Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13," accessed Dec. 05, 2016