A lot of people avoid bankruptcy because of the stigma attached to it. They don’t want to feel like they have “failed” or that they are “irresponsible.” But the truth is that bankruptcy in Gilbert is a legal right that is offered to those who are struggling with debt. There is nothing embarrassing or shameful about taking advantage of this right.
There are many ways that filing for bankruptcy can help you. Here are a few vital ways that filing for Chapter 7 bankruptcy in Gilbert can help, especially:
No Repayment Plan
There are actually two types of bankruptcy: Chapter 7 and Chapter 13. When you file for Chapter 13 bankruptcy, you will be developing a plan with your bankruptcy attorney to repay your debt over a three- to five-year period. The debt will be consolidated under one payment, and your interest rate will be lower, which will help you save money.
When you file for Chapter 7 bankruptcy, there is no repayment plan. All the debts that qualify are discharged, and you will never have to think about them again.
A Clean Slate
So what happens to debts under Chapter 7? They are discharged. That means that the slate is wiped clean. You don’t repay the debt, and the debt does not remain on your credit report.
A successful Chapter 7 bankruptcy filing will discharge all your unsecured debt, such as credit cards, medical bills, and personal loans. It will not discharge student loans, back alimony or child support, tax debt, or criminal fines or restitutions. However, with the money you’ve cleared up from credit card and other bills, you may now have the money to pay those other debts that can’t be discharged.
No Debt Limits
You can have $100,000 in credit card debt and still discharge all of it. There is no limit to the amount of debt that can be discharged under a Chapter 7 bankruptcy filing. You don’t have to worry that your debts have gotten so out of control that not even bankruptcy can save you. So long as you meet the Means Test to qualify for Chapter 7, you can discharge the debts, no matter how large they have grown.
Protection of Future Income
You don’t have to worry that your debtors will come calling for your future income or bonuses after your bankruptcy case is discharged. If you buy a car or get a big bonus at work, that will be yours to keep.
In some extreme cases, some of your assets may be up for grabs after your bankruptcy. For example, if you get a big inheritance, life insurance payout, or big divorce settlement within six months of your bankruptcy discharge, you may have to use some of it to pay back your debtors.
A Chapter 13 bankruptcy filing takes three to five years to complete. However, your debts can be totally discharged within two to three months of filing for Chapter 7 bankruptcy. You can get the fresh start you need in as little time as possible – without winning the lottery. You can totally turn your life around with a Chapter 7 bankruptcy filing.
If you are struggling with debt, talk to a Gilbert bankruptcy lawyer about how a bankruptcy filing might be able to help you. If you qualify for Chapter 7 bankruptcy, you can get a fresh start fast. But even if you need to file for a Chapter 13 bankruptcy, which provides debt restructuring, you can get a better handle on your debts and start taking back your finances. You can rebuild your life much more quickly than if you had continued to toil at paying off the debts yourself.
Gilbert Bankruptcy Lawyers can help you learn more about the bankruptcy process and whether it’s right for you. We work with individual and business clients, and we start with a complete review of your finances to help you understand the best strategy to get the maximum financial relief. If you decide to continue, we’ll create a strong bankruptcy filing that will increase your chances of success. Contact us in Gilbert today to talk with one of our experienced bankruptcy lawyers about your situation.
Gilbert Bankruptcy Lawyers