What you should know before filing for Chapter 7 bankruptcy

by | Jul 10, 2018 | Uncategorized

When a Texas individual is facing overwhelming debt, it can lead to frustration in various areas of life. In addition to growing balances and compounding interest, you may face other debt-related consequences, such as frequent and harassing contact with creditors. Fortunately, there are legal options by which you can deal with your debt. 

Chapter 7 bankruptcy is a common choice for individuals facing crippling debt and overwhelming financial obligations. This may be the most popular choice for consumer bankruptcy, but it is not always the best option for everyone. If you are considering Chapter 7 as a way out of your debt, you would be wise to ensure you completely understand both the benefits and potential drawbacks of this decision.

Why should you consider Chapter 7 bankruptcy? 

There are many benefits to the choice of filing for Chapter 7 bankruptcy. Perhaps the most important of these benefits is the fact that it allows you to address your debt in an organized way. Some of the other benefits of this choice include the following:

  • The process of completing a Chapter 7 bankruptcy is relatively short. It only takes approximately three to six months from start to finish.
  • While it is liquidation bankruptcy, it is likely you will be able to keep many of the personal things that are most important to you.
  • By filing for bankruptcy, it will put a halt to aggressive debt collection efforts against you and continued harassment from creditors.
  • Chapter 7 will lead to the discharge of various types of eligible debts.

If you are considering taking this step, you would be wise to carefully weigh all of the options available to you. Chapter 7 is not automatic relief for every single type of debt, and some applicants may get more benefit from a Chapter 13 bankruptcy filing. 

Taking the next step

As you consider your options for dealing with debt, you will find it beneficial to consider Chapter 7 bankruptcy. However, you will also be prudent to consider potential drawbacks, which can include the loss of non-exempt property.

A complete evaluation of your case can be a simple way to better understand Chapter 7 bankruptcy and how it can bring a potentially positive impact to your life. Dealing with debt can feel like a battle you will never win, but there are choices available to you, including managing your debt once and for all through bankruptcy.