Struggling with overwhelming debt? Filing Chapter 7 bankruptcy is one way to start fresh with your finances.
Chapter 7 bankruptcy, known as liquidation bankruptcy, is the quickest way to erase most unsecured debts or those that did not require collateral, such as credit card debt, personal loans, and medical bills. This type of bankruptcy rarely requires the sale of certain assets, but it may require that you “buyback” non-exempt assets from your bankruptcy trustee. There are strict requirements that come with Chapter 7 bankruptcy, but an experienced attorney will help determine whether you meet the qualifications to file.
How Long Does it Take to Get a Chapter 7 Discharge?
One of the significant benefits of Chapter 7 bankruptcy compared to Chapter 13 is the length of a typical case. A Chapter 7 bankruptcy can be resolved in about 120 days. This is a substantially shorter timeframe than filing under Chapter 13, which usually takes three to five years to complete. The sooner you are able to shake free from debt, the sooner you can move on with your life.
Advantage of Protection Through the Automatic Stay
In Jacksonville, a significant advantage of filing bankruptcy is the immediate protection of the automatic stay. The moment you file a bankruptcy petition, the automatic stay goes into effect, and it immediately stops all actions by a creditors to collect a debt. Lawsuits, wage garnishments, repossessions, foreclosure sales and all other ways of collecting a debt are frozen until the case is resolved or, in rare cases, if the bankruptcy judge specifically permits a creditor to recommence collection.
When you file, you will provide the Court a list of every creditor you owe in your paperwork. This ensures that every creditor is notified of your bankruptcy filing and the automatic stay. If you are still hounded by creditors after filing Chapter 7 bankruptcy, then your attorney can take other steps to stop the harassment.
Most Debts Are Discharged
In Jacksonville, when a person meets the qualifications for Chapter 7 bankruptcy, they can expect for most of their debts to be erased. Debts that are commonly discharged in Chapter 7 include personal loans, medical bills, and credit card debt. While Chapter 7 bankruptcy can be a lifesaver when you have piles of debt, it doesn’t affect some types of debt such as unpaid income taxes less than three years old or child support obligations.
Credit Scores May Improve After Filing Chapter 7 Bankruptcy in Jacksonville
Most people think that filing for bankruptcy will negatively impact their credit score. The reality is that people facing bankruptcy typically have poor credit, and many people see their credit score increase after a Chapter 7 bankruptcy discharge.
There are also indirect credit score benefits that come with filing bankruptcy. When creditors file lawsuits to collect a debt, it can have a devastating impact on your credit rating. Filing bankruptcy sidesteps those lawsuits and the credit score drops that come with it.
Parker & DuFresne, P.A. goes beyond debt elimination by helping our clients rebuild their credit after bankruptcy through our credit rebuilding program. Our clients typically see the positive changes as soon as a few months after discharge.
Discuss the Benefits of Filing Chapter 7 with a Jacksonville Attorney
Filing Chapter 7 bankruptcy has many benefits, but you need to educate yourself about the pros and cons before you file. A skilled bankruptcy attorney will help you understand the advantages of filing Chapter 7 bankruptcy in Jacksonville. To discuss your options, schedule a consultation right away.