Living with debts you can’t pay may impact every area of your life, from your job performance to your relationships, not to mention the effects on your credit score. Fortunately, chapter 7 bankruptcy offers struggling borrowers a way out, allowing you to completely discharge most secured debts and reclaim your life from debt. Below are just a few of the benefits of filing for chapter 7 protection.
4 Advantages of a Chapter 7 Bankruptcy
1. Eliminating Many Unsecured Debts
Under a chapter 7 bankruptcy, most unsecured debts are eligible for discharge, including credit card balances, medical bills, and even back taxes. However, some debts, like judgments related to DUI charges or student loans, are not eligible for discharge, so speak to an attorney to find out how filing for bankruptcy can help.
2. The Automatic Stay
Filing for bankruptcy triggers an automatic stay, which immediately stops all collections activity on the part of your creditors. This feature provides welcome relief from harassing phone calls, letters, and even repossession.
3. You May Keep Your Assets
While the trustee in a chapter 7 bankruptcy does have the right to seize some of your assets to pay back your creditors, the law actually allows you to exempt a wide range of property. With the help of experienced lawyer, you may be able to discharge your debts without surrendering anything at all.
4. Rebuilding Your Credit
Filing for bankruptcy does negatively impact your credit score, but you can actually start rebuilding your financial reputation right away. Within a year, you may be able to qualify for an auto loan or credit card, as long as you demonstrate that you can use credit responsibly.
If you’re struggling under the weight of unmanageable debt, the legal team at Bueker Law Firm is here for you. They have over 16 years’ experience serving borrowers throughout the greater Little Rock area, providing customized debt relief solutions and personalized bankruptcy advice. Visit their website or call (870) 673-1313 to schedule a consultation, and follow their Facebook for more advice and legal tips.