When faced with insurmountable debts, Chapter 7 bankruptcy can be the best way to regain control over your financial situation.
To make a more informed decision on what to do next, it is beneficial to understand some key advantages of this process.
Outlined below are some key advantages that may assist you in getting your finances back on track:
A chance to start over
Importantly, Chapter 7 bankruptcy provides an opportunity for a fresh start. By freeing yourself from some or all of your debt, you have a clean slate on which to rebuild your future. However, it is important to note that student loans and child support are generally not discharged through Chapter 7.
No limit to debts covered
Unlike Chapter 13 bankruptcy, Chapter 7 places no limit on the amount of debt you can have in order to file. Subsequently, more people are able to take advantage.
No repayment plan
Furthermore, in contrast to Chapter 13, Chapter 7 has no mandatory repayment plan. As a result, you are entitled to keep all forthcoming income.
The process is fast
Typically, a Chapter 7 bankruptcy case will conclude within six months. Additionally, within 90 days of filing a petition with the court, the debt is usually discharged. Thus, rather than feeling overburdened, you can confidently plan for the future.
Ideally, nobody wants to file for Chapter 7 bankruptcy. Nevertheless, it has been used by millions to improve their financial situation.
Comparing the advantages and disadvantages of Chapter 7 and 13 allows you to make an informed decision about what to do next. Understanding this process as well as your legal rights in Tennessee is a crucial endeavor.