Many Americans are suffering from financial woes. Whether it was serious health woes or just un-restrained spending on credit cards or anything in between, if you are feeling the burden of overwhelming debt, you may feel helpless, as if there is no way out. Thankfully, there are things that you can do to help relieve yourself of debt, including filing for bankruptcy.
Despite the public misconception surrounding the term "bankruptcy", it is important to realize that bankruptcy's purpose is to help people relieve themselves of personal debt and to eventually get off to a fresh new start. Two of the most common forms of bankruptcy are Chapter 7 and Chapter 13. Today we will discuss some of the pros of filing for Chapter 7 bankruptcy. It may help determine whether this is a viable option for you.
Although you may lose some of your luxury possessions, there are exceptions that help protect those who file for Chapter 7 bankruptcy from losing all their possessions, including property that you own. Your wages are also protected, as well as any property purchased after you file.
While it is true that a Chapter 7 filing will stay on your credit report for as many as 10 years, between the time you file and the time that you are ultimately relieved of your debt is quite short, often taking as little as three to six months. While you will in fact lose all your credit cards, within one to three years you may be able to obtain new lines of credit, though it is worth noting that subsequent credit will carry with it much higher interest rates.
Making the determination to file for Chapter 7 bankruptcy may not be easy. It may be in your best interest to speak with a bankruptcy lawyer to look at your situation and determine whether it is right for you.
Source: findlaw.com, "Pros and Cons of Declaring Bankruptcy under Chapter 7," Accessed April 24, 2017