Making the choice to file for bankruptcy is not easy, and it is likely that you are considering this option because you are struggling with the implications of overwhelming debt. If you are no longer able to manage your payments, you may benefit from the protections provided by this legal process. Like many consumers wanting to find a way out from their current financial circumstances, you might want to consider pursuing the Chapter 7 bankruptcy option.
Chapter 7 bankruptcy is a popular option for Pennsylvania consumers facing certain types of debt. There are strict eligibility requirements, however, and it will benefit you to learn about how to apply and what you can expect before you move forward. If you are not eligible for this specific bankruptcy option, there are others available to you.
The benefits of Chapter 7 bankruptcy
Chapter 7 bankruptcy is liquidation bankruptcy, which means that the proceeds from liquidating some of your assets will go toward what you owe to creditors. The thought of losing some of your personal property may not be appealing, but there are certain exemptions that may allow you to keep some of the things that are most important to you. Six reasons why Chapter 7 is a popular bankruptcy option include:
- This is an ideal choice for consumers who have a significant amount of unsecured debt, including credit card debt, medical bills and more.
- Chapter 7 only takes three to five months to complete, allowing you to move forward faster.
- You do not have to follow the terms of a debt-repayment plan, and there is no limit to the amount of debt you can have in order to be eligible.
- You will be able to retain your future income and much of your personal property.
- At the end of the Chapter 7 bankruptcy process, you will receive a fresh financial start.
- The discharge of debts occurs quickly, but there are certain types of debt that are not eligible for discharge, such as student loans.
To learn more about Chapter 7 and how it can benefit you, it can be helpful to seek an assessment of your individual case. This will provide you with insight regarding how you can move forward with the most appropriate bankruptcy option that gives you the best chance of securing a stronger and better financial future. Chapter 7 bankruptcy may be the right way to get rid of debt and start fresh.