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Know the benefits of Chapter 7 bankruptcy

Last week, we discussed some of the special considerations for people who are thinking about filing for Chapter 7 bankruptcy. While those considerations might worry some people who are thinking of filing for Chapter 7, there are some benefits that might outweigh them.

One thing that our readers should know is that filing Chapter 7 bankruptcy might help you improve your credit rating faster than if you do nothing or file Chapter 13 bankruptcy. With a Chapter 13 bankruptcy, your credit rating won't begin to improve until the bankruptcy is discharged.

A Chapter 7 bankruptcy can also stop creditor harassment right away. When you file for bankruptcy, an automatic stay goes into effect. That means that creditors can't contact you about collections. Additionally, lawsuits and garnishments stop when you file Chapter 7 bankruptcy.

Filing for Chapter 7 bankruptcy might help you if lost your home to foreclosure. You might be able to have the debt discharged. However, if you are in the process of a foreclosure, Chapter 7 can't help you to keep your home. If you are trying to stop a foreclosure, Chapter 13 might be a better option for you.

We know that you have a lot to think about before filing for bankruptcy. It is vital for you to get answers to all your questions in order to help ensure that you fully understand the process and how filing bankruptcy will affect you. If your debts are overwhelming and the creditor calls are ruining your life, bankruptcy might be what you need to help take control of your finances. Call or contact us online to find out if we can help.

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