Four Reasons Why Chapter 7 Bankruptcy Can Offer Quick Debt Relief

For most people seeking debt relief, a Chapter 7 bankruptcy offers a relatively simple and fast discharge of debts, even if the process from start to finish can take several months.  Here are four reasons to choose a Chapter 7 bankruptcy in Florida if your financial situation qualifies:

1. Chapter 7 is the easiest form of bankruptcy. It offers absolute relief from creditors of most unsecured debts such as credit cards and secured debts (although discharged secured debts may result in the forfeit of any collateral or deposits). Some debts such as certain tax liabilities and liens, most student loans, alimony and child support  cannot be discharged through any form of bankruptcy.
2. As soon as a Chapter 7 bankruptcy is filed, creditors must stop collection efforts by mail, phone or other means. Plus, it stops any property repossession activities by creditors, such as foreclosure or vehicle repossession.
3. Most creditors won’t show at a “meeting of creditors” before the Bankruptcy Trustee, even though the debtor must. This keeps the meeting simple and quick.
4. Florida’s Chapter 7 exemptions include the debtor’s primary home and retirement assets, both which generally make up the bulk of the debtor’s assets.

Chapter 7 Bankruptcy Offers Debtor Flexibility
Depending on your situation – subject to what’s called “means testing” – you can likely qualify for a Chapter 7 debt liquidation. If you don’t qualify, you may qualify for a Chapter 13 repayment bankruptcy. Conversely, a Chapter 13 bankruptcy can be changed to a Chapter 7 bankruptcy if a debtor’s circumstances change and the judge approves.

Tags: Bankruptcy in Florida, Chapter 7 bankruptcy, debt relief for chapter 7 bankruptcy, debtors assets, Florida bankruptcy

Posted in Reasons to File Bankruptcy