Blog > 2021 > October > 3 Benefits of Filing A Chapter 7 Bankruptcy
If you’re falling further and further behind in your bills, it’s likely time for a lasting solution. Otherwise, the problem will undoubtedly continue to get worse unless there’s a massive change in your financial status. Thankfully, you can say goodbye to all that debt and start fresh by filing the correct type of bankruptcy for your needs. Filing for a Chapter 7 bankruptcy has many benefits. However, there are three that are important to highlight.
Chapter 7 bankruptcy allows you to discharge all your unsecured debt so that you can gain control of your finances once again. Unlike secured debt, like your mortgage and car payment, unsecured debt does not have a link to any tangible collateral. The most common types of unsecured debt include:
Even overdraft charges on your bank account qualify as unsecured debt and are often eligible for discharge through Chapter 7 bankruptcy.
When you’re unable to pay your bills on time, your credit score starts to plummet. Until it hits rock bottom, the numbers will keep falling until you pay the balances in full. The alternative is to file Chapter 7 bankruptcy and have the debts quickly discharged through the court. Although bankruptcy initially impacts your score, the numbers bounce back much sooner than if you kept treading water.
After your bankruptcy is finalized, paying your everyday bills each month will steadily increase your credit score over time. Before you know it, your credit score will sit in the good to excellent range rather than continuing to sink to the bottom slowly.
As the collection calls come in, you likely feel more than a little bit stressed. And when creditors file judgments against you, your ability to manage the stress can feel overwhelming. The situation grows even direr if your creditors successfully garnish your wages and take even more income out of your pocket.
Filing Chapter 7 bankruptcy can change all that. From the very second, your bankruptcy attorney files the paperwork, all of your creditors must completely stop their collection attempts, including phone calls. The stop order remains on the books until the court can review your case and decide on the status of your accounts.
If you want to explore whether Chapter 7 bankruptcy is right for you, call SM Law Group at 818-855-5950. We will help you set up a free consultation appointment to discuss your case. By the end of that meeting, you’ll have the information you need to decide if it’s time to file bankruptcy. If so, just let us know, and we’ll get right to helping you fill out the paperwork and navigate the next steps.
If you are looking for ways to get debt-free, don’t hesitate to contact us today through our website or give us a call at to schedule your free consultation.</strong >
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