Why Do People File for Chapter 7 Bankruptcy?

  • Chapter 7 Bankruptcy

Why Do People File for Chapter 7 Bankruptcy?

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Owing someone something is one of the worst things. Nobody likes to be reminded of this fact. Being in debt is all this and more since the creditors are always at your door asking for their dues. For people who have amassed a large debt, a bankruptcy filing is probably the best way out. Individual debtors have the option of filing under Chapter 7 or Chapter 13 bankruptcy; however, Chapter 7 is probably the preferred choice for almost all debtors. According to Dallas based bankruptcy law firm Recovery Law Group, the top reasons why people choose this chapter of bankruptcy are:

  • Get a fresh Filing for Chapter 7 bankruptcy wipes your slate clean. Your entire unsecured non priority debts such as medical debt, credit card debt, personal loans, etc. are discharged thereby providing you a chance to start afresh.
  • Retain future income. Unlike Chapter 13 where you end up repaying your creditors with your future income, Chapter 7 gets all your debts discharged without any such obligation.
  • Discharge within months of filing. In this bankruptcy chapter, debtors get a discharge within 60-90 days of filing. This is fast when you compare it with Chapter 13 bankruptcy, where discharge is typically given after 3 to 5 years from the date of filing.

Though bankruptcy filing is generally the last resort, you need to consider the benefits over continuously living under the threat of creditors. For knowing more about your legal rights as a debtor, it is important you consult with experienced bankruptcy lawyers Dallas. You can do so by calling 888-297-6023.