If you qualify for a bankruptcy chapter 7, it may very well be your best option to free yourself from your debt and move on with your life. There are, however, a number of issues which you must strongly consider before deciding if this type of bankruptcy is the right option for you. Although it will get your creditors off your tail, it also certainly has its own set of downsides. What follows are a few of the major pros and cons.
- Just because you are filing for a bankruptcy chapter 7, does not necessarily mean that all of your belongings are going to be taken away from you. State exemptions will likely allow you to keep your essential property.
- It only takes around 3 to 6 months to complete the entire process, meaning quick freedom from your troubling debt. This is one of the fasting and most reliable ways to free yourself from the constant hassling of creditors, and allows you to start planning ahead for your financial future.
- You will have the option to sign a voluntary ‘reaffirmation agreement,’ which will allow you to choose certain debts to retain. Doing so may help you keep your home, vehicles, furniture, or other property, as you continue to pay certain manageable debts. You also have a choice of which assets will be retained, and which assets liquidated to pay off other creditors.
- Once your bankruptcy is entirely completed and your debts forgiven, you will once again be able to apply for credit. There are specific programs in place to issue credit to individuals who have undergone bankruptcy, and you should be able to rebuild your credit in a safe, responsible way.
- You will lose some of your non-exempt property and property which is not kept via a ‘reaffirmation agreement.’
- It will at least temporarily ruin your credit, and you may have to explain your bankruptcy in the future when working to apply for credit. You will also lose your credit cards while undergoing bankruptcy.
- You can only file for this type of bankruptcy once every 6 years.
- It does not absolve you from alimony, child support, student loans, and potentially mortgage liens and other debts.
It is important that you know precisely what you are getting in to when you decide to move forward with your bankruptcy. An experienced bankruptcy attorney will be able to advise you which option is best for your particular situation. This is a major life decision, which should never be taken lightly.
If you have any questions about bankruptcy chapter 7, or if you would like to speak to us about your options, please contact North Tampa Law Group at (813) 518-7411 or complete a free online case evaluation. We represent clients during stressful and difficult times in their lives. We are empathetic, responsive, and push for a quick resolution. We look forward to helping you resolve your issue quickly, fairly, and in a way that will help you to return to the stable, predictable life that you deserve.