Why Filing for Chapter 7 Bankruptcy May Be the Answer for You

 Posted on September 22, 2014 in Chapter 7

Let’s face it: bankruptcy is a daunting prospect. Many first-time filers feel stressed, anxious and even overwhelmed at the idea. The truth, however, is that bankruptcy comes with many benefits: no more calls from creditors and no more worrying about losing your home, to name two.

When most individuals think of bankruptcy, Chapter 7 comes to mind. That is because it is the most common type of bankruptcy.

According to UScourts.gov, Chapter 7 allows for an immediate stop of wage garnishments, home foreclosure, phone calls from creditors and repossessions. A trustee will evaluate your assets to see if liquidation is an option, but in most cases, filers can keep their properties.

Ultimately, very few creditors appeal the results of creditors’ meetings. The bankruptcy process ends with the court wiping away or discharging eligible debts.

It is important to note, however, that the court cannot discharge all types of debt. Ineligible debts include school loans, child support and employee tax debts.

Another advantage of Chapter 7 is the relative speed of the process. In fact, it usually takes less than six months from the time you file for Chapter 7 bankruptcy to become relieved of debt.

There is a tradeoff, of course. Filing for bankruptcy means you cannot apply for credit for up to 10 years. Still, filers enjoy the relief that comes with having a plan and seeing the light at the end of the tunnel.

If you are considering filing for bankruptcy in San Antonio, Texas, we can help. Chance M. McGhee is a San Antonio bankruptcy attorney. He will sit down with you, examine your situation and help you determine if filing for bankruptcy would be the right solution.

Mr. McGhee will also explain the pros and cons of Chapter 7 bankruptcy so you are aware of how the process works. To schedule a consultation, please call our office at 210-342-3400.