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A person who has overwhelming debt may find he or she is ineligible for chapter 13 bankruptcy as the amount owed is more than the allowed amount. This is not the case when it comes to chapter 7 bankruptcy. This option can be selected regardless of ho

The Benefits of Chapter 7 Bankruptcy

Individuals overwhelmed by debt may feel as if they have no hope. They are never going to be able to pay the bills in full and get a fresh start. Fortunately, chapter 7 bankruptcy allows them to do exactly this. Any dischargeable debts will be erased when the process is complete, although certain bills must still be paid. This includes child support and alimony, some taxes, student loans and any debt obtained through fraudulent methods. In addition, the debtor must still pay on any existing liens, such as a lien on a mortgage. However, many individuals find this to be the right choice for their situation. What are the benefits of chapter 7 bankruptcy?

Unlimited Debt

A person who has overwhelming debt may find he or she is ineligible for chapter 13 bankruptcy as the amount owed is more than the allowed amount. This is not the case when it comes to chapter 7 bankruptcy. This option can be selected regardless of how much the person owes, which is of great help to many who find they owe a significant amount.

Most Debts Are Discharged

One major difference between chapter 7 and chapter 13 bankruptcy is the chapter 7 option does not require the debt be repaid. Once the process is complete, most debts are discharged, other than the exceptions mentioned above. This allows the person to enjoy a clean slate when it comes to their finances. However, individuals should work to ensure they don't find themselves in the same situation again. Steps should be taken to present this.

A Quick Process

Debtors who select this option discover the process is usually completed within a six month period. The initial part of the process takes approximately 60 to 90 days to complete at which time a discharge order is issued. Once this takes place, the bankruptcy trustee handles the distribution of property to unsecured creditors and the case is closed.

Contact a bankruptcy attorney to learn when this is the best option and when chapter 13 bankruptcy should be selected. Many factors need to be considered when making this important decision, thus debtors should never try to tackle this alone. The attorney is present throughout every stage of the process to answer questions, ensure everything runs smoothly, and to represent the debtor when needed. Many attorneys offer a free consultation so the debtor can learn more about his or her options. Take advantage of this today to obtain much-needed relief from an overwhelming issue that impacts every area of life.