Filing for Chapter 7 bankruptcy is considered a suitable option for persons burdened by enormous debts. In this type of bankruptcy, individuals can discharge unsecured debts that have been plaguing them for long. This includes debts arising from medical bills, personal loans and credit cards. Fortunately, personal assets such cars, homes and private belongings are exempted from the debt payment process. Before filing for the bankruptcy process, you must provide honest answers to expedite the review and receipt process.
Chapter 7 was primarily developed as a “get out of debt free card” for hardworking Americans. By activating the process, citizens are provided with a rare chance to escape from a mountain of debt and sail into the sunset without any repercussions. A family’s income can be quickly drained by numerous responsibilities ranging from medical emergencies to tuition fees. Nevertheless, a detailed chapter 7 bankruptcy benefits you in several ways such as:
- Ceasing repossession procedures- The beneficial financial escape route clears any balances accrued after financing companies have repossessed and auctioned your car. Such a move eliminates the risks of garnishments or lawsuits arising from differences between the auction cost and the balance owed.
- Protecting your assets-Contrary to the common fear that creditors will liquidate your property, Ohio State is mindful of the needs of customers. This entails allowing citizens to separate assets which are exempted from liquidation.
- Terminating creditor harassment- With the development of the bankruptcy clause, you no longer have to put up with the constant harassment of creditors on a regular basis. Feel free to hire a specialized attorney who will deal with nagging creditors on your behalf. By hiring such an attorney, you are provided with peace of mind to needed to work efficiently.
- Ending lawsuits- Lawsuits and garnishments are known to shrink your hard-earned income through payment of legal fees and other expenditure. This cuts off your ability to afford necessities. Fortunately, Chapter 7 immediately eliminates any garnishment process experienced beforehand and paves the way for more income receipt. Additionally, your lawyer will ensure that your driver’s license is reinstated and halt any lawsuit related to your car.
According to financial advisors, signing up for Chapter 7 serves as an opportunity to wipe off your outstanding debts, and re-establish a fresh financial start. Most clients who have filed for Chapter 7 have reinvented their lives by procuring new homes or cars within a single year.