People struggling with overwhelming debt have options at their disposal, but not all of these options are equally effective. Many people find that Chapter 7 bankruptcy is the most effective and lasting means of achieving true debt relief. If you are struggling with credit card payments, medical bills and other unsecured debt, Chapter 7 may be right for you.
Chapter 7 wipes out debt…
A key feature of Chapter 7 bankruptcy is that it completely discharges certain types of consumer debt. Once you complete the process, you are free and clear of every debt that was discharged, leaving you to move on with your life with a clean financial slate.
And gets creditors off your back
Another key benefit of Chapter 7 is that, like other forms of bankruptcy, it stops creditors from taking collection actions against you. As soon as you file, creditors may long longer:
- Garnish your wages
- Repossess your vehicle
- Foreclose on your home
- Seize your bank account
- Obtain court judgments against you
In fact, once you file for Chapter 7 bankruptcy, your creditors may not even contact you directly. If they want to communicate with you, they must do so through your attorney.
Is Chapter 7 right for you?
Chapter 7 bankruptcy is not right for everyone. If your income rises above a certain threshold, you are not eligible to file under Chapter 7. In this case, Chapter 13 bankruptcy might be an attractive option.
Many people fear they will lose all of their property if they file under Chapter 7, but this is typically not true. Most people who file are able to keep their house, vehicle and personal possessions.
If you do qualify and decide to go forward with the legal process, you can take one step closer to enjoying total debt relief and getting creditors off your back for good.