Chapter 7 is one of the most popular ways to discharge personal debts. Unlike Chapter 13—which requires petitioners to reorganize their debts into a more manageable repayment plan—Chapter 7 bankruptcy wipes them out instantly. As such, it’s ideal for those who have little disposable income. If you’re in over your head financially, the following information can help you decide if Chapter 7 is worth pursuing. 

What Are the Advantages of Chapter 7?

bankruptcyChapter 7 can help you regain your financial footing almost immediately. As soon as the proceedings are over, you’ll essentially be granted a clean slate. You’ll have no further obligations to the lenders whose debts were discharged, and if you take strategic steps, you can start rebuilding your credit right away. For many debtors, Chapter 7 is the only way to get out from under massive medical bills, hefty credit card debt, and past-due bills. And unlike Chapter 13, there is no limit to the amount of debt you can discharge in Chapter 7. 

 

 

For help preparing your bankruptcy petition, turn to We The People of NY. Located in the heart of Manhattan at 233 W. 14th St., this locally owned and operated company specializes in legal document preparation. For more than 25 years, they’ve been helping clients commence all kinds of legal proceedings, from divorce to estate planning. To explore all the services they provide, visit their website. Call (212) 633-2200 to discuss your document preparation needs.