Top Benefits Of Using Chapter 7 Bankruptcy
When it comes to debt-relief options, Chapter 7 bankruptcy is one of the best choices you have, if you qualify for it. Through Chapter 7, you can receive a number of great benefits that you will not experience with other forms of debt-relief, and here are four of the top benefits offered through Chapter 7 bankruptcy.
Your creditors will stop harassing you
One of the things that often causes people to evaluate Chapter 7 as a method for debt-relief is creditor harassment. Creditors calling you constantly for money that you do not have can be overly stressful, and the only way you can stop this from happening is by paying off the debts you have. If you file for Chapter 7, the creditor harassment will also end, as the court will order your creditors to stop contacting you. When the court does this, your creditors cannot contact you in any way. If they do, they are breaking the law and could suffer consequences from their actions.
You will instantly receive relief from debts
The second benefit of using Chapter 7 is the instant relief you will receive from your debts. Not only will your creditors stop calling you, but you will also be able to stop paying the debts you owe as soon as you file. There may be bills you must keep paying, such as your mortgage or utility expenses, but you will likely be able to stop paying all your credit card bills and any other types of unsecured debts you owe.
Your case will be closed in less than a year
The speed in which a Chapter 7 case offers is yet another top benefit. In almost all cases, Chapter 7 bankruptcy filings are completely closed within one year of filing. In many cases, it takes much less time than this, though.
Your credit will only suffer for a short time if you take the right steps
The other thing to realize is that filing for Chapter 7 will negatively affect your credit; however, it will only impact it for a short time if you take the right types of steps after filing. The posting will stay on your credit for a decade, but this will not stop you from getting credit lines if you begin working on improving your credit right after you file.
If you need help for the debts you have, talk to a chapter 7 bankruptcy attorney to find out if you qualify for Chapter 7. You can also discuss the benefits it would offer to you if you chose to file.