Why Would I Want to File Chapter 7 Bankruptcy?
If you have extreme difficulty paying back your creditors and owe a seemingly insurmountable debt, filing for bankruptcy might be your only option for relief. While there are different types that you can file, Chapter 7 might be the right way to go. There are certain reasons to file Chapter 7 bankruptcy you should know.
One of the best reasons to file Chapter 7 bankruptcy is that it gives you a fresh start with your finances. You are freed of certain types of debt through discharge, which allows you to essentially start over. At the same time, it’s important to know that certain debts cannot be discharged, such as child support, alimony and some taxes.
With Chapter 7, you get to keep any future income you earn. Additionally, any property you acquire after you file bankruptcy does not get included in the bankruptcy estate. Some other property can be included, but generally, that usually involves things inherited from a death benefit, settlement agreement or divorce decree and finances obtained through life insurance policies.
Unlike Chapter 13 bankruptcy, Chapter 7 doesn’t have a limit on the amount of debt the filer is required to hold. There are also no repayment plans involved, which is the case for Chapter 13.
Chapter 7 bankruptcy also carries a notable benefit in allowing debts to quickly be discharged. This can take place in as short a period of three months, which means you no longer have to worry about those debts. The bankruptcy court will issue a discharge order from 60 to 90 days after you have filed. From there, after your property is given to your unsecured creditors by the trust, the case is closed by the court.
If you live in Virginia and have been considering bankruptcy as your only option to be free of your debts, you need the assistance of Canfield Wells. The bankruptcy lawyers in Richmond VA will help you every step of the way in your case. Contact Canfield Wells at your earliest convenience to discuss your situation with bankruptcy lawyers in Henrico VA.