Advantages of Chapter 7 Bankruptcy
RGG Law has already looked at the potential downsides of filing for Chapter 7 bankruptcy. While it might seem overwhelming when you consider the risks, our bankruptcy lawyers recommend you look at the bright side of things. In this follow-up blog entry, we want to look at some of the more positive outcomes that often result in filing Chapter 7 bankruptcy.
Once again, a reminder that these entries are purely for educational purposes and are very general. If you need more specific advice for your case, contact RGG Law for a free consultation.
A Fresh Start
In our last entry, we briefly went over the fact that Chapter 7 bankruptcy is what most people think of when they hear the word “bankruptcy” – the process of having your debts cleared in exchange for giving up assets, property and so on.
This “wiping the slate clean” perception of filing bankruptcy is the first positive we want to address. Being in insurmountable debt is stressful, exhausting and can leave you feeling defeated. While you certainly have to make sacrifices if you file, there is a certain relief that comes with having that debt eliminated that can help you make a big change in your life.
Your Money Will Be Yours Again
One of the worst feelings when you owe money due to loans or living off of credit cards is watching the money you earn disappear from your bank account. The more you have to repay, the less of your own money you see until it becomes almost impossible to keep track of your outgoings.
If you file for Chapter 7 bankruptcy, and after the process is over and your debt is considered repaid, the money you earn will be yours again. While this does depend on individual situations, as some people may still owe on secured assets afterward, the level of control that you are given back is extremely important to fixing your finances.
Chapter 7 Bankruptcy is Faster Than Chapter 13
Whereas Chapter 13 bankruptcy can last anywhere between three and five years, Chapter 7 bankruptcy is typically over and done with within three to six months, depending on the level of debt. The Chapter 7 approach is more akin to ripping off the band-aid, rather than slowly peeling it away – while it can be painful to let go of unsecured or non-exempt assets while the process is going on, the relief and freedom afterwards comes much sooner.
Chapter 7 and Self-Assessment
Just like Chapter 13, Chapter 7 bankruptcy can be an opportunity to reassess your finances and your spending habits, allowing you to look at how and why you accumulated enough debt to have to file. In the case of Chapter 7, the weight is lifted much sooner, rather than potentially looming for a long time like Chapter 13 bankruptcy.
Whichever type of bankruptcy you may need to file for, keeping in mind why you needed to file in the first place is important.
RGG Law and Filing Bankruptcy
Whatever your situation, however you got there, and whichever type of bankruptcy you might be considering filing for, RGG Law is here to support you. Our bankruptcy lawyers have seen a wide variety of financial problems and difficulties, and we understand how easily and how quickly debt can mount up. You can be confident that RGG Law will give you understand, non-judgmental and uniquely personal guidance to help you get back on your feet. Contact us for a free consultation with a bankruptcy lawyer today.