Each bankruptcy process has its pros and cons. In the case of Chapter 7 proceedings, there are the obvious cons, such as needing to liquidate certain assets, the stringent qualification requirements, the fact it will be a negative spot on your credit report for years and so forth. However, this article doesn't intend to focus on these negatives as the potential benefits are much more important than the cons.
Here are some of the most important positives about Chapter 7 bankruptcy that filers should be aware of:
- Chapter 7 bankruptcy happens quickly. Most filers have completed the process within three to six months.
- Most of your assets will be exempt from liquidation. Chapter 7 is not supposed to leave you destitute. Rather, it's supposed to give you the ability to have a sound financial life again. This means that the personal possessions you need for driving, wearing clothes having a home, etc., should remain largely immune from liquidation.
- Within a year of filing for Chapter 7, you should be able to get new lines of credit.
- You can file for Chapter 7 multiple times in your life, but they have to be spaced apart approximately six years.
- Bankruptcy filers benefit from an immediate automatic stay. This prevents debt collectors from harassing you and garnishing your wages.
If you're in debt trouble it could feel like it will be years, decades or never before you're debt free again. You don't have to live like this any longer if you can qualify for the Chapter 7 bankruptcy process. Make sure you fully explore your bankruptcy and all the pros and cons of Chapter 7 before you make your decision to proceed.