Sometimes life throws struggle and we are continuously stressed about our failing finances. Filing for bankruptcy is the right choice under such circumstances as it gives you a chance to start fresh and give your mind some well-deserved peace. Filing for bankruptcy can be done in Chapter 7 or 13, but how do we know which one is more beneficial for us?
Take help from a professional Chapter 7 bankruptcy lawyer at Vohwinkel Law firm. It is a premium law firm in Las Vegas where lawyers have specialized experience in handling proceedings related to Chapter 7 bankruptcy. They can provide you with protection from debt collectors and their harassing calls and can also help you in eliminating your debts.
What is Chapter 7 bankruptcy?
This type of bankruptcy is called liquidation that helps in eliminating debts of all forms including medical and credit card bills. After emerging from Chapter 7 bankruptcy, you don’t owe even a single penny to any of your creditors and you get a fair chance to start earning a fresh source of income without constant worries about payment of bills.
However, only those who keep making payments on time to a secured creditor can file for Chapter 7 bankruptcy and you also need to meet certain income criteria which are determined using a means test. In some cases, you might have to exchange a valuable asset to become debt-free.
Benefits of Chapter 7 bankruptcy
1. You can earn and save money in the future:
- Any property or income that you have acquired post the filing of Chapter 7 bankruptcy will be yours and will not be included in the bankruptcy estate.
- Even death benefits or life insurance policy benefits will not be liquidated as a part of the bankruptcy estate.
2. You don’t have to follow up with a repayment plan:
- There is no repayment plan that the court will give you as is the case with Chapter 13 bankruptcy.
- After the debts are discharged, you walk out debt-free.
3. Quick discharge of debts:
- Debt discharge occurs faster within 2-3 months of filing.
- The case gets closed as soon as property distribution is completed amongst unsecured creditors.
Certain debts cannot be discharged even with Chapter 7 bankruptcy. These debts can include any tax debts, student loans, criminal debts, or debts involved in a divorce or a property settlement case.
Although filing for Chapter 7 or 13 bankruptcies is a very complex decision, taking advice from professional lawyers in Las Vegas can put you on the right track.
