Three Benefits of Chapter 7 Bankruptcy
Some of you may be at a point in your life when you are considering bankruptcy. If so, you may be wondering why a Chapter 7 Bankruptcy may be better for you. Some of the advantages to filing a Chapter 7 bankruptcy are as follows:
1. Although some Chapter 7 clients lose some property in a Chapter 7 Bankruptcy, most of them do not lose any property. Even if a client does end up having to forfeit some property, in most cases, the client will be allowed to keep their car, home, household items, and all other necessities.
2. Time – A typical Chapter 7 Bankruptcy takes between three and six months to complete. This is much shorter than the three to five years it takes to complete a typical Chapter 13 Bankruptcy.
3. This means that in roughly three to six months, you can have a wide variety of debts including CREDIT CARD DEBT, MEDICAL DEBT, PAYDAY LOANS discharged, meaning that you are no longer required to pay them back!
This also means that you can start rebuilding your credit and rehabilitating your finances faster than you would in a Chapter 13.
4. Collection calls stop as soon as the bankruptcy is filed!
Although it is more expensive up-front than a Chapter 13 Bankruptcy, a Chapter 7 Bankruptcy is generally cheaper in the long run. A Chapter 13 will likely cost $3,000 or more in attorneys’ fees throughout the life of your plan.
Please keep in mind that you may not be eligible for a Chapter 7 or that in some circumstances, a Chapter 13 may be more advantageous. Every bankruptcy case is different and you should speak with an experienced bankruptcy attorney before determining which, if any, bankruptcy option is right for you. Also, please remember there are some debts that cannot be discharged through any type of bankruptcy, such as child support obligations, student loan debt (in most circumstances) and certain tax debts.
ABOUT THE AUTHOR: Jason Kotlyarov, J.D., LL.M.
Originally from Moscow, Russia, Jason Kotlyarov grew up in Shawnee, KS and attended the University of Missouri-Kansas City for his Bachelor’s of Science in Accounting, Juris Doctor, and Latin Legum Magister (Master of Laws) in Taxation. He started his legal career in practice in Springfield, MO primarily practicing Bankruptcy Law and Social Security/Disability Law. He is proud to have helped hundreds of clients get a fresh financial start and obtain the government benefits that have enabled them to receive the fresh start that they were looking for.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.