You hope that you never find yourself in a dire financial situation, but it could happen at some point in your life. There are many situations that can lead you to bankruptcy, such as a job loss, medical emergency or poor money management.
Regardless of why you’re considering Chapter 7 bankruptcy, it’s critical to determine if it’s the right solution for you. Here are three reasons why it may be just what you need:
A fresh start: Once your Chapter 7 bankruptcy case comes to a close, you’ll find yourself clear from many of your debts, thus providing the opportunity to start fresh.
No repayment plan: With Chapter 13 bankruptcy, you’ll repay some or all of your debts via a repayment plan that lasts three to five years. Chapter 7 bankruptcy doesn’t require a repayment plan, which allows you to keep all future income.
Chapter 7 bankruptcy is fast: The sooner you complete the bankruptcy process, the sooner you can move on with your life. The discharge of debt in Chapter 7 bankruptcy typically occurs in three months. Also, the entire process usually takes no longer than five to six months. This allows you to more easily see the light at the end of the tunnel.