Chapter 7 bankruptcy provides a clear path to fresh start and a brighter economic future. The decision to file should always be weighed carefully, but for the right individual, the solution offers a much-needed second chance. Below are ways it can accomplish this goal for you and get you back on firmer financial ground.
Why Choose Chapter 7 Bankruptcy?
1. Eliminate Certain Debts
A Chapter 7 filing will wipe away most unsecured debts, including credit card balances, medical bills, late rent payments, and past-due utilities. However, not everything you owe is dischargeable with this approach. For instance, student loans, child support, and tax obligations generally cannot be eliminated. Car loans can usually continue at the option of the filer, which means you can keep your car.
2. Discharge Debts Quickly
With a Chapter 7 bankruptcy, you can bounce back relatively quickly. The average case takes about three to six months from the initial filing to the final discharge. Compare that to Chapter 13, which lasts three to five years to resolve. But Chapter 13 can be used to protect property like a house which could be sold in a Chapter 7 case.
3. No Debt Limit
There is no limit on the amount of debt you can seek to eliminate in a Chapter 7 filing. This can be a godsend for those carrying substantial burdens. But you have to be aware that some debts may not discharge under the law. An experienced attorney can analyze this for you.
4. No Repayment Plan
Chapter 13 is essentially a repayment plan based on assets or your disposable monthly income. It can be useful in some cases, such as avoiding a foreclosure on a house. But with Chapter 7, generally no repayment is necessary if all your assets are exempt.
If you think bankruptcy may be an option please contact us. The attorneys at the Law Offices of Frank E. Turney, P.A., will let you know if you qualify. Since 1993, they have been representing Baltimore County, MD, in such matters, offering quality legal guidance through every step of the process. Call (410) 788-8830 today to arrange a consultation. Visit the website for more information about their background and expertise in this and other practice areas.