Individuals filing for bankruptcy protection most commonly file under Chapter 7 or Chapter 13. Check back with us to learn more about Chapter 13. This blog will focus on the advantages of a Chapter 7 filing:
- Discharge of unsecured debts. Most personal debts are unsecured debts such as medical bills or credit card bills. These types of debts are discharged or eliminated in a successful Chapter 7 filing. This means at the conclusion of your case, you are no longer liable to pay those debts.
- Stops collection. When you file a bankruptcy case, all lawsuits, foreclosures, garnishments, repossessions and harassing collection calls must stop.
- Quicker resolution. The term of a Chapter 7 filing takes less time than a Chapter 13 case. Chapter 7 cases generally last about 3 to 6 months, while a Chapter 13 lasts 3 to 5 years.
- Less expensive. In most cases, a Chapter 7 filing costs less than a Chapter 13. A typical Chapter 7 does not last as long as a Chapter 13, so your attorney’s fees and costs are less.
- Exemptions. The law provides numerous exemptions which protect the majority of your assets that you want to keep (house, car, retirement accounts, etc.). Many Chapter 7 debtors keep all of their assets while still getting the benefit of discharging their debts.
It is important to contact an experienced bankruptcy attorney to discuss whether filing a Chapter 7 bankruptcy case could be beneficial to you. We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with a knowledgeable and compassionate attorney.