The Benefits of Filing for Chapter 7 Bankruptcy

Are you facing overwhelming debt and feeling like there is no way out? Chapter 7 bankruptcy may be an option for you. You may be able to start fresh, free from the crushing burden of debt. Understanding the benefits of filing for chapter 7 bankruptcy can help you make an informed decision about your financial future. 

What Is Chapter 7 Bankruptcy? 

Chapter 7 bankruptcy is a form of liquidation bankruptcy that allows individuals to obtain relief from their debt. It is sometimes referred to as “fresh start” or “straight” bankruptcy because it wipes out most unsecured debts such as credit card balances, medical bills, and personal loans. This type of bankruptcy does not require individuals to repay their debts in full; instead, individuals can have their debts discharged or eliminated altogether. 

Benefits Of Filing For Chapter 7 Bankruptcy

Filing for chapter 7 bankruptcy can provide numerous benefits including:

• Stopping creditor harassment – Immediately upon filing, creditors must stop all collection efforts and contact with the debtor. This includes letters, phone calls, emails, court proceedings, etc., all related to the debt owed by the debtor. 

• Dischargeable debts – Upon being granted a discharge by the court, most unsecured debts will be eliminated completely without requiring repayment in full or at all. 

• Automatic stay – A court-mandated action that stops most forms of legal action against a debtor. This includes stopping foreclosure proceedings and repossession actions on secured properties such as cars and homes. 

• Fresh start – Once discharged from these obligations, individuals are free from debt—allowing them a fresh start financially speaking—freeing up money which was previously tied up in paying off old bills. 

• Protection from creditors – Once the automatic stay goes into effect, creditors must cease all collection activities until further notice from the court or until after the discharge has been granted (if applicable).  

For those facing overwhelming debt who are looking to get a fresh start financially speaking, filing for chapter 7 bankruptcy may be an option worth exploring further. If you are considering filing for chapter 7 bankruptcy or any other type of bankruptcy and would like more information about your rights and options under the law please contact Williams Law Group PLLC today to schedule a consultation with one of our experienced attorneys! We specialize in helping people just like you navigate through this difficult time so they can get back on track financially and regain control over their lives!