Both Chapter 7 and Chapter 13 bankruptcy offer great benefits to those seeking a way out after their finances went out of control. However, bankruptcy lawyers in Oceanside report that most debtors reach out to Chapter 7 bankruptcy. After all, it eliminates most debt. But what is bankruptcy Chapter 7 and which are its most important advantages? Let’s find out!
Gives you a fresh start
Chapter 7 bankruptcy will erase all your unsecured debt so you can truly get a new start and gradually rebuild your credit rating and your finances. Once your filing goes through, you will be free from paying high-interest credit card payments, costly medical bills and other debts that have no collateral backing.
Certain types of debt, however, cannot be discharged. They are called secured debts. What is bankruptcy Chapter 7 unable to wipe out? Certain taxes, alimony and child support, fraudulent debts, criminal fines, student loans (unless the court rules otherwise), etc.
Puts an end to the phone calls
Having to put up with zealous creditors calling to ask about your payment surely is frustrating. If you are unable to reach an agreement with your creditors, there’s a big chance you will have to deal with a lawsuit and/or a harassing collection agency.
The law prohibits any harassment, oppression or abuse by creditors, debt buyers and collection agencies. Therefore, it’s best to seek legal counsel from a bankruptcy attorney serving Oceanside and neighboring areas. What is bankruptcy Chapter 7 lawyer able to help you with? They will handle your bankruptcy filing and the whole case from start to finish, providing you with thorough and competent legal advice.
Once you file for bankruptcy, you will be granted an injunction against bill collectors and creditors. The automatic stay will stop any foreclosure proceedings, lawsuits filed by a creditor or other individual or entity seeking money from you. No more collection calls!
Quickly discharges your debts
Most debtors want their case to be over as quickly as possible and that is exactly what they get when they file for Chapter 7 bankruptcy. The entire process usually lasts between two and five months.
It takes approximately 60 to 90 days for the bankruptcy court to issue a discharge order after you file for bankruptcy. You will be assigned a trustee, who will distribute your property to unsecured debt collectors. After that, your case will be closed.
No minimum debt limit
If your debt exceeds a certain amount, you aren’t eligible for Chapter 13 bankruptcy but when it comes to Chapter 7, your debts can never be too high to qualify. There is no limit on the amount of secured or unsecured debt a filer may have. However, to qualify for Chapter 7, you need to meet an income limitation.
No repayment plan
Under Chapter 7 bankruptcy, debtors are not required to repay debt through a three- to five-year repayment plan approved by the court. After the unsecured debt is discharged, the debtor is no longer responsible for replaying it.
Doesn’t include your future income
The court will examine and evaluate your income in the last six months until the moment you filed for bankruptcy. Anything you made afterward will not be involved in the bankruptcy estate.
There are only a few exceptions, such as inherited property, the proceeds from a life insurance policy, death benefits, and assets from a settlement agreement or divorce acquired within 180 days after filing.
What is bankruptcy Chapter 7 and how can you benefit from the filing?
What is bankruptcy Chapter 7? How do I file? Are there any other, more favorable my options? Your trusted San Diego and Riverside County bankruptcy law firm of Chang & Diamond, APC has all the answers!
Schedule a consultation and we will provide information about anything related to both Chapter 7 and Chapter 13 bankruptcy concerning your case. Our well-versed bankruptcy lawyers will guide you through each and every step of the process.