It's not the situation you want to find yourself in, but if Chapter 7 bankruptcy can improve your finances, it's a strategy to consider.
With the right approach, you can efficiently move through the Chapter 7 bankruptcy process, thus improving your circumstances and giving you a fresh start for the future.
Here are some of the many benefits that attract individuals to Chapter 7 bankruptcy:
- A fresh start: With Chapter 7 bankruptcy, you're able to free yourself from many of the debts that are weighing you down. This gives you a new start, thus allowing you to avoid the mistakes you've made in the past. It will feel like the weight of the world has been lifted from your shoulders.
- No repayment plan: There are many benefits of Chapter 13 bankruptcy, but you may not like the idea of a repayment plan. This calls for you to use your disposable income to repay some or all of your debts. Also, the repayment plan will last three to five years, thus ensuring that the bankruptcy process drags on.
- No debt limitation: Chapter 13 bankruptcy caps how much debt you can have to file. Chapter 7 bankruptcy doesn't have the same limitation. Regardless of how much debt you're carrying, it won't affect your ability to file for Chapter 7 bankruptcy.
- It's a relatively fast process: As long as you remain organized and take the right steps, a discharge of debt under Chapter 7 bankruptcy typically occurs within two to three months. The entire process is likely to wrap up within six months. It's much easier to remain on track when you can see the finish line.
While these are the top benefits of Chapter 7 bankruptcy, there are others to consider as you decide if this is the right financial decision.
As you learn more about Chapter 7 bankruptcy, compare it to the pros and cons of Chapter 13. This will give you a clear idea of which one is best for someone in your position.
There are many twists and turns throughout the bankruptcy process, so make sure you prepare accordingly. Doing so will help you protect your legal rights in Illinois along the way.
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