The vast majority of people view bankruptcy in a wholly negative way. They think it’s the end of the line, from which there’s no recovery; a financial pit, from which there’s no way out. All of them are wrong.
Bankruptcy, Chapter 7 in particular, is a lifeline and an excellent way to regain control of your finances. This is why, today, we’ll be exploring it in-depth, shedding light on some of its lesser-known aspects.
Still, choosing this path is a serious financial decision that can have long-term implications. Therefore, if you’re considering taking this step, first and foremost consult with a qualified Chapter 7 lawyer in San Diego or near you.
How does Chapter 7 affect your life?
Chapter 7 carries a lot of benefits, some of which may not be obvious at first glance, but still have the potential to turn one’s life around in a positive way. Here are only a few of them:
Debt discharge
Of course, we must start with the obvious. The primary benefit of Ch7 is that it allows for the discharge of most unsecured debts. This includes things like medical and utility bills, credit card debt, past-due rent, and many more. With debt discharge, you’re effectively getting a fresh financial start, as you’ll no longer be personally responsible for repaying said obligations.
Automatic stay
For most people, the automatic stay is arguably the best thing about Chapter 7. Triggered just by filing for bankruptcy, it goes into effect immediately, halting the majority of collection attempts by creditors. This provides “instant relief” from creditor harassment, foreclosure, and repossession, giving you much-needed breathing room to reorganize your finances.
Asset protection
Asset protectionThe reason why people fear bankruptcy is the false belief that it means losing everything. California, like every other state, has specific exemptions that protect certain types of property from liquidation. Chapter 7 specifically, allows the filers to protect their key assets, such as home, car, and personal belongings, making it so they don’t have to start from scratch.
Expeditious process
Compared to other forms of bankruptcy, Chapter 7 boasts the fastest resolution and the cheapest filing process in general. Typically, the discharge is granted within a few short months, allowing you to move on and start rebuilding your finances as soon as possible.
Potential to improve credit score
While it is true that bankruptcy has a negative initial impact on credit score, it doesn’t stay that way forever. As discharged debts cease to be a factor and the liquidation process takes care of the remainder, individuals are left free to gradually rebuild their credit scores through responsible management of their finances.
No repayment plan
Unlike Chapter 13, Chapter 7 bankruptcy does not lock you into a lengthy repayment plan. This means that your path to debt relief is super straightforward, which can be especially beneficial if you have limited disposable income.
Do you make payments after bankruptcies?
In Chapter 7, you are not obligated to make payments toward your debts. Discharge exists to free you from unsecured debts, while liquidation does the same for secured ones. However, in some instances, debtors may choose to reaffirm a secured debt. This means that it is possible to keep making payments in order to keep an asset that serves as collateral.
Where to find a respectable Chapter 7 lawyer near me in San Diego?
If you’re looking for some of the most experienced and well-versed bankruptcy attorneys south of Lake Hodges, you’re in the right place! Law Offices of Mark L. Miller is widely recognized by clients and industry authorities for our outstanding service and knowledge of legal procedures.
We take a personalized approach to bankruptcy, tailoring our strategies to your circumstances and capabilities, thereby giving you the best possible chance at a positive outcome. Reach out to us today for a free consultation!