When you are struggling to pay your bills and considering filing for bankruptcy protection, it is important to understand which type of filing is best for you. This blog will discuss the benefits of filing a Chapter 7. Be sure to read our next blog to learn more about the benefits of a Chapter 13 filing.
Below are a few examples of some of the advantages of filing a Chapter 7 bankruptcy:
- Protection from creditors. As soon as you file your bankruptcy, the automatic stay is effective. The stay prohibits most collection activity from continuing against you while your bankruptcy is pending.
- Comprehensive debt relief. Most, if not all, of your unsecured debts will be discharged or eliminated in a Chapter 7. The most common unsecured debts are credit card bills and medical debt.
- Timely debt relief. A typical Chapter 7 filing lasts four to six months, which is a relatively short period of time when compared to the three to five years a Chapter 13 case lasts.
- Assets protected by exemptions. While a Chapter 7 filing is often called a “liquidation bankruptcy,” the reality is that most debtors do not lose their assets. Under the law, there are numerous exemptions that protect certain assets from being included in your bankruptcy estate. Examples include protections for your home, vehicle, qualified retirement account and other types of valuable assets. In fact, it is common for a Chapter 7 debtor to discharge all of his or her debt while maintaining possession of all of his or her assets.
- Affordable. A Chapter 7 case is generally less expensive than filing a Chapter 13 case. A Chapter 7 doesn’t last as long, so your lawyer’s fees and costs are usually lower.
The above are just a few examples of the benefits of a Chapter 7 bankruptcy. To learn more or how a Chapter 7 filing would impact your debt, contact us to schedule an initial consultation.
Don’t delay obtaining your relief from debt any longer. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.