Filing bankruptcy is never fun for anyone. Coming to the realization that you have lost control of your finances may be tough, but it’s important to realize that there is hope for your situation. Though you may have heard that filing for Chapter 7 bankruptcy will help you get rid of all of your debts, it’s important to have all of the facts before you decide which route to take. For those who want to know whether Chapter 7 may be the best option for their situation, here are a few pros and cons of filing this type of petition:
Cons Associated With Chapter 7 Bankruptcy
Although Chapter 7 bankruptcy can be helpful for some people, there are a few drawbacks:
1. The federal government wants to make sure that consumers are not using bankruptcy as a way to get out of paying their debts. Consequently, you’ll have to take a means test to ensure that your income is low enough to file.
2. Some may be forced to liquidate their non-exempt assets to allow their creditors to recover some of their funds. Unfortunately, this means you may not be able to keep big assets like your car.
Pros of Filing for Chapter 7
If you and your Wichita Chapter 7 bankruptcy lawyer have decided that Chapter 7 is the best route for you to take, here are some of the benefits you can experience:
1. Filing for Chapter 7 is a shorter process, which means it will only take 3-6 months from start to finish (while Chapter 13 could take up to five years).
2. Once your filing is complete, you will be absolved of most debts. With Chapter 13 bankruptcy, you may end up spending years paying your creditors back.
3. If you are current on your mortgage and don’t have too much non-exempt equity, there’s a high chance that you can keep your home.
When it comes to filing for bankruptcy, it’s important to get help from an experienced Wichita Chapter 7 bankruptcy lawyer who can give you sound advice about your situation and help you do things right. If you’re considering filing a petition for Chapter 7 or a different type of bankruptcy, Contact Business Name to find out how you can get assistance with debt relief so that you can regain control of your finances and your peace of mind. For more information watch our videos.
