Everyone needs to have a fresh start sometimes. Whether it’s starting a new diet, moving home, or getting rid of financial burdens, getting a fresh start can be uplifting psychologically and improve quality of life significantly. If you have been struggling with poor cash flow for some time and your debts have accumulated, you may be longing for a fresh start. The dream of gaining a fresh start and becoming debt-free in a relatively short time can become a reality if you file for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is unique because it takes only a matter of months to complete. Not only that but in the majority of circumstances, the successful completion of the bankruptcy results in the complete discharge of all debts. This is why it is often referred to as the “fresh start” bankruptcy. If you are considering filing for Chapter 7 bankruptcy to gain a fresh financial start, the following is what you need to know.
Chapter 7 bankruptcy involves the liquidation of assets
Chapter 7 bankruptcy does not require that debts be repaid through income. Instead, it involves the liquidation of some of the debtor’s assets so that the proceeds can be used to pay off debts.
Chapter 7 bankruptcy is not available to everyone
Chapter 7 bankruptcy is a popular choice, but it’s not available to everyone. It is targeted toward those who are unemployed or who have a low income, and therefore, those with a significant income may have to file for Chapter 13 bankruptcy instead.
If you are struggling with accumulated debt and you want a fresh financial start, look into the possibilities that Chapter 7 bankruptcy could offer you.