Bankruptcy is an excellent option for debt relief. It can give you a clean slate. It works by erasing debts.
It would be best to learn more about it before deciding it is right for you. So here are some ways chapter 7 bankruptcy can be a good option for relieving debt.
Protection period from creditors
When you file your case, the court protects you from creditors. When you file, the court places a stay on all collections. That means calls, letters and garnishments will stop. It can also temporarily stop foreclosures, evictions and repossessions.
Bankruptcy discharge
Filing your chapter 7 bankruptcy documents can discharge most debt, including:
- Medical bills
- Credit card bills
- Personal loans
As soon as the court gives you a discharge, you will no longer need to pay these debts.
High success rates
Generally, if you have never filed for bankruptcy before and are honest during the proceedings, you will likely have your debt discharged within a few months. You can expect the court to grant you a discharge if you meet all of the requirements.
Property is often exempt
The court allows most people in chapter 7 bankruptcy cases to keep their property. This is because specific laws protect exempt property, and you can keep it. Exemptions can cover anything from your income to the kitchen table your grandmother left you.
While this is an option, there are many things to consider before filing for bankruptcy. First, think about your situation and your future goals. Then, conduct more research to learn about chapter 7 bankruptcy and determine if it is right for you.