Many people shy away from a Chapter 7 bankruptcy filing because they're concerned about the long-term impact on their finances.
There is no denying the fact that a Chapter 7 bankruptcy will remain on your credit report for 10 years. Just the same, this can make it difficult to secure a loan, such as for a home or vehicle.
Even so, there are many benefits of Chapter 7 bankruptcy. Here are three reasons you should give this a second look:
- A fresh start: If your finances are in desperate need of repair, you may want to look into Chapter 7 bankruptcy as a means of obtaining a fresh start. Once you file, it won't be long before your debt is discharged and you're in position to start at square one.
- No repayment plan: With Chapter 13 bankruptcy, you're required to repay some or all of your debt via a repayment plan. This is not true of Chapter 7 bankruptcy.
- It's fast: You want to start fresh as quickly as possible, and with Chapter 7 bankruptcy that's exactly what will happen. Generally speaking, your discharge will occur within two to three months of filing.
There are many other reasons to give Chapter 7 bankruptcy a second look, but these are among the most powerful.
If you decide this is the best way to improve your finances, learn more about the many pros and cons so that you can be confident in your decision. From there, focus on the process moving forward and your legal rights as a consumer. An attorney can provide guidance.
Source: FindLaw, "Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13," accessed June 07, 2018