Chapter 7 bankruptcy is a popular form of bankruptcy in the United States. For some, it is the last resort of those who have experienced a sudden job loss or a major medical issue that they had no control over. Through bankruptcy liquidation filed under this chapter the debtor can get a fresh financial start by receiving a discharge of all debts.
Are you deep in debt? You can improve your financial situation if you file the right way and on time. However, before you make a decision, you should meet the qualification to file Chapter 7. You will only qualify if you have little or no assets. This means you will need to relinquish your valuables, if you have some, because your creditors can stake claim on those goods.
If you qualify for filing Chapter 7, then this bankruptcy is a good option to consider. Even though there are some debts that can not be discharged through bankruptcy — such as federal student loans, alimony and child support payments — there are several reasons why filing for Chapter 7 can be a benefit for you.
- With debts being discharged, you’re free from the stress and anguish over how you will make ends meet. This emotional relief, as an addition to financial relief, is something that can change your life from anxiety to new hope.
- You will be eligible for new loans within a few months. At first it will cost you a lot of money because the high rate of interest of these loans. But the key is you can get them at any rate so that you have a chance to rebuild your credit.
- You will end the phone calls from creditors as well as to stop the garnishments that you are facing. This means that you’ll be able to experience peace in your home again.
- You can begin a new chapter by learning from your mistakes with credit and debt. You can start to learn how to correctly manage money so that you won’t face the same financial trouble in the future.
- When you don’t use credit, after bankruptcy, you can work on building a savings account, an education fund and even a retirement account. but work off a cash only system.
These are some benefits when you file Chapter 7 Bankruptcy the right way and on time. When you file this bankruptcy, you have a fresh start. With hard work and determination you can achieve your financial success.