6 Benefits of Filing Chapter 7 Bankruptcy
When you find yourself facing financial difficulties and it seems that you won’t be able to repay your debt, it’s time to file for bankruptcy and achieve financial freedom once again. Among the different chapters people file, Chapter 7 has certain benefits that you might find helpful for your particular situation. Before contacting expert Chapter 7 bankruptcy attorneys from San Diego and starting the process, explore the biggest advantages of this type of bankruptcy.
What are the benefits of filing Chapter 7?
Chapter 7 bankruptcy is the most filed type of bankruptcy in San Diego and the rest of California. Individuals who find themselves facing tough financial prospects often use this bankruptcy to find their feet again. These are the benefits of Chapter 7 that will help you with your finances.
Your debts will be forgiven
Probably the biggest benefit of filing bankruptcy under this chapter is that you will be able to discharge the majority of your debts, including personal loans, credit card, and other unsecured debts.
Additionally, this will also grant you a better opportunity to repay the non-dischargeable debts that will remain despite your bankruptcy. Finally, all your qualifying debts will be completely wiped with Chapter 7, and the
The creditors will stop harassing you
Creditors are notorious for harassing their debtors with endless phone calls, text messages, emails, and other forms of communication. As soon as you file Chapter 7, the judge will put automatic stay into effect. This prevents all your creditors from getting in touch with you through any means. Also, automatic stay puts a stop to property repossession.
You will get exemptions for your home and personal property
Chapter 7 bankruptcy does not require you to sell all your possessions in order to repay creditors. Far from it. The law dictates exemptions that allow you to keep your property. Exemptions can include your home, household goods, your vehicle, as well as all the items necessary for personal care due to a disability.
You’ll start rebuilding your credit score
While Chapter 7 will show up on your credit score, it does not prevent you from successfully rebuilding it once you’re finished with your bankruptcy claim. In fact, rebuilding your credit after this type of bankruptcy will prove to be easier than you might think.
You will receive help with your mortgage payments
If you find yourself behind on mortgage payments for your home, Chapter 7 allows you to buy some time until the process of filing is complete. Although this chapter doesn’t eliminate the mortgage debt, it grants additional time necessary for restructuring your finances.
There are different options for your car loan
Finally, this chapter offers several different options for taking care of your car loan. You can choose to redeem your vehicle, affirm your debt, or surrender your vehicle. If your car is worth significantly less that you currently owe, you could also pay the value of your vehicle in cash, allowing you to keep possession of it.
Who are the leading Chapter 7 bankruptcy attorneys in San Diego?
There’s more to Chapter 7 than just knowing what the benefits are and what actions you should avoid before filing to maximize your chances of success. You should also see whether this chapter is the best choice for you by looking into the advantages of Chapter 13 and learning more about the process of Chapter 13 bankruptcy. Only then can you make an informed decision on whether or not to file Chapter 7.
If all this sounds too complicated, don’t worry – the BK Lawyers are here to help you. Chang & Diamond have years of experience handling different types of bankruptcy cases, and we are always here to help you out. Leave all things bankruptcy-related to us, while you take a stroll around Balboa Park to rest and relax. With our help, financial freedom is just a step away. Reach out to us today tell us what you need us to do!