Advantages of Chapter 7 Bankruptcy

 

If things are getting worse and most of the credit collectors are haunting you even in your dreams, then filing a bankruptcy case is your last resort for restful sleep. Bankruptcy cases can be wearisome, but nevertheless it can give you a fresh start in life without a charge.

 

There are five types of bankruptcy cases to choose from. Even if they all aim to get you off from debts, each type has its own way of doing things. Most debtors go for a Chapter 7 or Chapter 13 bankruptcy proceeding. Though, many contend that if you were so buried deep in debt, then the best solution for you would be a Chapter 7 bankruptcy.

 

Here's why:

 

1. No minimum debt requirement.

 

Unlike in Chapter 13, filing a Chapter 7 bankruptcy will not require you to at least incur a certain amount of debt so as to qualify for the bankruptcy proceeding. As long as you need to discharge your debt regardless of its amount, you can do so without any hassle.

 

2. You can get a discharge.

 

By filing Chapter 7, you can easily get a discharge for your debts. By doing so, most of your unpaid balances will be erased. In this way, your creditor may no longer extort you to pay off your debts.

 

3. It sets off the "automatic stay" barrage.

 

After filing a Chapter 7 bankruptcy, the court issues an "automatic stay" to all of your creditors. This means that your creditors are banned to pursue collection efforts from you. During the proceeding, your creditors are also restricted from filing a case against you.

 

4. You're out of debt in 6-months!

 

A Chapter 7 bankruptcy proceeding is faster than Chapter 13. In Chapter 7, you are out from your debt within 6-months time. Hence, you can start an unsullied life sooner than you can imagine.

 

5. You do not lose everything when you file under Chapter 7.

 

Contrary to some myths regarding bankruptcy, a Chapter 7 bankruptcy does not let you lose any of your properties classified as exempt. You still get to keep them even if the bankruptcy case is over.

 

6. It gives an immediate relief to a threatening foreclosure.

 

Chapter 7 bankruptcy can instantly impede a probable foreclosure. With the power of the restraining order given by the court as soon as you've filed Chapter 7, an immediate foreclosure will be temporarily stopped. This will give you enough time to re-assess the