If you are planning to file for bankruptcy protection and you are not sure what type of case you should file, this blog will discuss the benefits of a Chapter 7 filing. Our next blog will discuss the advantages of filing a Chapter 13 case.
Chapter 7 is the most common type of personal bankruptcy filing because it offers a debtor numerous advantages, including:
- Quick results. A typical Chapter 7 case lasts four to six months, which may seem like a long time, but not when compared to the three to five years a Chapter 13 takes to complete.
- Comprehensive debt relief. When you file for bankruptcy, all of your creditors must participate and all of your debt must be included. Thus, when you obtain your discharge, you receive comprehensive debt relief.
- Cancellation of unsecured debt. Your credit card debt, medical bills and other loans that are not secured by assets pledged as collateral to the lender are typically discharged or eliminated in a Chapter 7 case.
- Maintain possession of property. Even though a Chapter 7 is commonly referred to as a “liquidation bankruptcy,” the majority of Chapter 7 debtors do not lose any assets in their filing. Both federal and state laws provide numerous exemptions that protect many valuable assets from being included in your bankruptcy estate. Examples of property that is protected by exemptions include your home, vehicle, retirement account and many other types of assets. In fact, it is common for a Chapter 7 debtor to discharge the majority of his or her debt and keep all of his or her property.
- Affordable. Since a typical Chapter 7 filing does not last as long as a Chapter 13 filing, a debtor’s attorney’s fees and costs are much lower.
The above are a few examples of the benefits offered to a debtor in a Chapter 7 filing. Be sure to read our next blog which will discuss the advantages afforded by a Chapter 13 case.
If you are considering filing a bankruptcy and you need help determining which type of filing would be best for you, contact Fitzgerald & Campbell to schedule an appointment. We do not offer just one debt relief option, we don’t push you in one direction. If bankruptcy right for you, we will tell you. If it’s not, we will tell you that. If bankruptcy is your get-out-of-debt plan, it needs to be done right. It needs to be in the hands of experienced lawyers who have been there before. Contact us today!