There are several kinds of bankruptcy that you may be looking into, but if you qualify, Chapter 7 bankruptcy is one of the best. Chapter 7 bankruptcy is the simplest kind of bankruptcy because it helps you eliminate all of your unsecured debt without having to make payments.
You will have to meet certain requirements to go through Chapter 7 bankruptcy, such as passing the means test.
Chapter 7 bankruptcy has several benefits. These include:
- Fast processing times
- The elimination of unsecured debts through discharge
- Eliminating harassing phone calls
- Ending collection efforts and pending lawsuits
This relatively quick kind of bankruptcy may take only a few months to resolve. You can complete Chapter 7 bankruptcy without making monthly payments to your creditors. This kind of bankruptcy does require that you give up some assets.
Still, there are many exemptions that allow you to keep much of what you have collected over the years. For example, you may be able to keep necessary clothing, a vehicle and other assets, as well as some equity in your home.
Many people avoid Chapter 7 bankruptcy because they have heard so many bad things about it. The reality is that this can be a great way to get out of debt if you feel like you are in over your head.
If you are struggling to make payments, have fallen behind on multiple debts, have a low income or no income or are struggling in other ways, this kind of bankruptcy may be the right choice for you. Our site has more information on bankruptcy, so you can learn more about Chapter 7 bankruptcy.