Every year, around half a million people file for Chapter 7 bankruptcy. This type of bankruptcy filing helps consumers break free from the cycle of unmanageable debt and allows them to rebuild their credit. If you are struggling with your finances, you may be wondering if this is the right process for you. To help you figure out your next steps, consider the four benefits of Chapter 7 bankruptcy below.

4 Benefits of Chapter 7 Bankruptcy

1. Elimination of Most Unsecured Debt

Chapter 7 bankruptcy wipes away most of your unsecured debts, providing you with a fresh financial slate. From credit card balances to medical bills, from back-rent to past-due utility charges, bankruptcy courts will eliminate what you owe. However, there are exceptions that you should keep in mind; student loans, for instance, are not dischargeable in any kind of bankruptcy.

2. No More Debt Collector Harassment

As soon as you file Chapter 7 bankruptcy with the courts, all collection actions against you must cease. This means that bill collectors must stop contacting you, which brings great peace of mind to many bankruptcy filers. If you continue to receive calls or letters from debt collection agencies, simply refer the agency to your lawyer.

3. You Can Start Rebuilding Your Credit

Another perk of filing bankruptcy is that you will complete a credit counseling course where you will learn how to manage your financial affairs and make better decisions moving forward. The best way to bounce back after a bankruptcy filing is to start rebuilding your credit right away, which, while difficult, is not impossible. Securing a credit card with a low limit, for example, can start you on the path toward a more stable financial future.

4. It's a Fast Process

Chapter 7 bankruptcy tends to be a relatively quick process. Though every case is different, the average Chapter 7 filer's debts are discharged within three to six months. The sooner you get out of debt, the sooner you can take the necessary steps to rebuild your financial standing and your life.

Michael D. Doyle, Attorney at Law is a bankruptcy attorney who has been serving the Elyria, OH, area for more than 25 years. Call (440) 323-0001, visit his firm's website, or connect with them on Facebook or Twitter to schedule a consultation. Chapter 7 bankruptcy will give you the second chance you need to take control of your financial well-being.