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There are many advantages of Chapter 7 bankruptcy

If you find yourself considering the benefits of bankruptcy, it's important to learn more about both Chapter 7 and Chapter 13.

Generally speaking, most people start out with a focus on Chapter 7 bankruptcy. As you learn more about this process, you may find that it's exactly what you need in order to improve your financial situation.

Some of the advantages of Chapter 7 bankruptcy, as compared to Chapter 13, include the following:

  • A fresh financial start. In short, Chapter 7 gives you the opportunity to start fresh with regard to your finances. Since most of your debts are eliminated, you will feel better about hitting the ground running and making better decisions this time around.
  • No limits on the amount of debt. Unlike Chapter 13, there are no rules in place that limit the amount of debt that you can have. For some people, those who have piled up a lot of debt over the years, this is one of the biggest benefits.
  • No repayment plan. With Chapter 13 bankruptcy, you are required to repay some or all of your debt through a repayment plan that typically lasts between three and five years. With Chapter 7 bankruptcy, this doesn't come into play. Once the debt is gone it's gone for good.
  • Fast acting. Many people avoid the bankruptcy process because they're under the impression that it will drag on for many months or years. This is not the case with Chapter 7 bankruptcy, with the discharge of debts typically occurring as soon as three months after filing.
  • Although these are not the only benefits of Chapter 7 bankruptcy, they are among the most important. When you take these into consideration, it's easy to see why the majority of people considering bankruptcy first learn more about Chapter 7, including whether or not they qualify.

Even if you eventually file for Chapter 13 bankruptcy, you'll first want to see if yo u qualify for Chapter 7. If you do, there's a good chance that this is the decision that will be best for you in the future. From there, all you need to do is learn more about filing and follow the steps as outlined by the court.

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