Are you trying to decide if bankruptcy is the right option to resolve your debt? At The Buchalter Law Group, our lawyers understand that deciding to declare bankruptcy is a difficult decision that should be carefully considered. When you have excessive debt, it can substantially affect your credit, your reputation, and your assets. That is why we are here to review the details of your situation and determine if you should file for a Chapter 7 or Chapter 13 bankruptcy. Below, we give you a list of some of the pros and cons of Chapter 7 to help you decide if it is the right bankruptcy option for you.
Most of the clients we see end up filing for this type of bankruptcy because it will erase the majority of their debt. Pros of Chapter 7 bankruptcy include:
- You can keep certain types of exempt property and the salary or wages you earn after you file.
- The Chapter 7 bankruptcy process usually takes around 3 to 4 months.
- You can open new lines of credit sometimes immediately after your bankruptcy discharge.
- You don’t need to have a specific amount of debt to file for Chapter 7.
Chapter 7 bankruptcy might not be the best option for your situation. The following are some of the cons of filing for Chapter 7:
- Your Chapter 7 bankruptcy will remain on your credit report for up to 10 years.
- You will lose your non-exempt property if it is sold by the bankruptcy trustee.
- Your credit cards with existing balances will be closed post-bankruptcy discharge.
- Your lender may even close your credit accounts with no balance post-bankruptcy discharge.
- It will be difficult to get approved for a traditional mortgage for 2 to 5 years post-bankruptcy.
- If you have filed for bankruptcy and received a discharge, you cannot file again for at least 8 years.
Let Us Handle Your Bankruptcy Claim Today
We know that filing for bankruptcy can make you feel stressed, which is why we will use all of our experience and resources to guide you and ensure your interests are fully protected. If you have more questions about filing for bankruptcy, get in touch with our law firm to speak with one of our seasoned legal representatives.
Call (321) 320-6088 to schedule your free case evaluation with our legal team today.