The Benefits of Filing Chapter 7 Bankruptcy
Although filing for bankruptcy is often seen as a last resort for most people, filing actually has significant benefits and can often help people eliminate debts. Chapter 7 bankruptcy allows for the discharge of debt after the liquidation of a debtor’s non-exempt assets in order to pay off the person’s creditors. To qualify for this type of bankruptcy, however, the debtor has to satisfy certain income requirements. Importantly, there are some situations in which Chapter 13 is a better option for consumers, so it’s always important to speak to an attorney before making any decisions that can affect your legal rights
If you are contemplating filing for bankruptcy, it is extremely important that you have an experienced lawyer on your side, helping you make that decision. The North Carolina bankruptcy lawyers at King Law Firm can assist you with taking all of the necessary steps to file for a Chapter 7 bankruptcy. Please call us today to find out more about how we can assist you with your Chapter 7 bankruptcy case.
Advantages of Chapter 7
The primary goal of filing for Chapter 7 bankruptcy is to allow the debtor to start over again with a clean financial slate. Since a Chapter 7 bankruptcy eliminates certain types of debt, the debtor can escape personal liability for all of the debt that is being discharged in bankruptcy.
It is important to keep in mind, however, that there are certain types of debt that, generally speaking, cannot be discharged in bankruptcy. One of the most commonly cited examples of such debt is student loan debt. Moreover, liens on property, including tax liens, mortgages, and mechanic’s liens will still remain in place after Chapter 7 bankruptcy proceedings are completed.
Still, filing for Chapter 7 bankruptcy has its advantages. Some of the most common advantages of filing for Chapter 7 bankruptcy include the following:
The Automatic Stay
When you file for Chapter 7 bankruptcy, it results in an automatic stay that prevents debtors from engaging in any collection activity while your case is pending.
Quick discharge of debt
Discharging debt pursuant to a Chapter 7 bankruptcy proceeding typically occurs within a very short period of time – typically within the 90-day period after filing for bankruptcy.
No limit on the amount of debt to be discharged
A Chapter 7 bankruptcy does not impose a limitation on the amount of debt that is subject to discharge. Chapter 13 bankruptcies, on the other hand, do have such limitations. Also, unlike with a Chapter 13 bankruptcy, an individual who files for a Chapter 7 bankruptcy does not have to make debt payments in accordance with a repayment plan imposed by the court.
Speak with a North Carolina Bankruptcy Lawyer Today
The knowledgeable legal team at King Law Firm is ready to assist you with your Chapter 7 bankruptcy case. To schedule a free case evaluation and legal consultation with an experienced North Carolina bankruptcy attorney, please call us at (800) 635-1683 or contact us online today.