Chapter 7 Bankruptcy – An Overview
Unfortunate economic times can fall hard on people who have huge debts to pay off. Filing a bankruptcy case means a debtor is not left with any way to repay his creditors. This is the ultimate step that an individual can take under such tough situations.
Bankruptcy cases are the intricate legal proceedings that relieve a debtor of his huge debts either by liquidating his non-exempt assets or reorganizing them.
Of the two most commonly preferred chapters under the bankruptcy codes, one is chapter 7.
A chapter 7 bankruptcy case starts as soon as the court appoints a trustee who takes over the entire non-exempt property of the concerned debtor. He liquidates the assets and pays off the creditors who are involved with the debtor. Opting for a chapter 7 bankruptcy can lead to potential changes in your life. Here are a few advantages of filing a bankruptcy case under chapter 7.
Elimination of debts – A major benefit of filing chapter 7 under the bankruptcy code is that it ensures the elimination of almost all kinds of unsecured debts (unsecured loans, credit cards, unpaid medical bills, payday loans and repossession deficiencies).
Bankruptcy discharge – Most people, who will apply for chapter 7, will be discharged from bankruptcy in a span of 4 months.
Court protection – A significant benefit of this option is that under this code of bankruptcy, a debtor cannot be contacted by any of his creditors or agencies. This is a protection that a debtor can avail to as and when he applies for chapter 7 bankruptcy. Reaffirmation of debts is the only reason for which a debtor can be contacted as debts like mortgage or a car loan needs to be paid off separately.
No repayment – Chapter 7 option specially benefits debtors who are unemployed and do not have a proper income source by eliminating the need of offering a monthly repayment option to the creditors.
Credit counseling – This debt relief option also ensures that a debtor handles his finances properly in future. It requires the debtor to get a bankruptcy credit counseling from an approved source.
Free from tension – This bankruptcy option allows a debtor to lead a worry free life by eliminating severe debt problems.
Are you facing severe financial problems? Do you want to file a chapter 7 bankruptcy? San Bernardino dwellers can seek professional legal assistance from Miller and Associates, PC and bid farewell to all your tensions.