If you are someone who is in a lot of debt, then you might have at least considered the idea of filing bankruptcy. Chapter 7 bankruptcy, in fact, might be exactly what is on your mind. It's completely understandable to be hesitant before filing, though. While you're still trying to decide whether or not filing bankruptcy is right for you, consider these top benefits.
Your Creditors Can't Call or Harass You Anymore
One reason why you might be feeling really stressed out about your debt and your financial situation could be because you're being harassed by your creditors. You might be getting constant phone calls from the companies that you owe money to, and you might be getting lots of letters in the mail, too. Your creditors might have even contacted your references or your employer, which can be very embarrassing. One of the immediate benefits of filing bankruptcy, and one of the benefits that you might appreciate and enjoy the most, is the fact that your creditors will no longer be able to harass you. Finally, you can get some peace, which can probably help you feel a lot less stressed out.
You Won't Have to Pay Some of Your Debts Back
The difference between Chapter 7 and Chapter 13 bankruptcy is that with Chapter 7 bankruptcy, you don't have to pay your debts back. This means that a lot of your unsecured debt might be wiped completely clean, and you won't have to worry about paying any of it. This is one of the primary benefits of filing Chapter 7 bankruptcy.
There's a Good Chance You Won't Have to Give Up Your Belongings
If you are like many people who consider filing Chapter 7 bankruptcy, one thing that you might be concerned about is losing your belongings. After all, you might have heard that the bankruptcy trustee in one of these cases can sell your belongings and use the proceeds to pay back some of your creditors. However, this isn't necessarily something that you should be concerned about. After all, in many cases, you are allowed to keep items up to a certain value.
You Can Choose Whether to Keep Your Home or Car
With Chapter 7 bankruptcy, you typically have the choice of whether or not you want to keep your home or car if you still owe money on them. This depends on things like how far behind you are on your payments and whether or not you will be able to afford to make your payments after your bankruptcy. Also, be aware that filing Chapter 7 bankruptcy will give you temporary protection against foreclosure or repossession.
If you have more questions, contact a chapter 7 bankruptcy attorney.