The Benefits of Bankruptcy
As surprising as it may seem, bankruptcy has the potential to benefit its filers in a number of different ways. Despite the fact that bankruptcy generally holds negative connotations among the public, most people fail to realize that this form of debt resolution is actually quite beneficial for those who opt to use it. Filers should commend themselves for both recognizing the gravity of their situations and taking the right steps to resolve them.
Benefits of Chapter 7
Depending on the type of bankruptcy that an individual files, the benefits may vary. For those who select liquidation, or Chapter 7, bankruptcy, they will see the following advantages:
- Most, or in some cases all, of one’s unsecured debt will be eliminated. This includes credit card debt, medical bills, signature loans, and utility bills
- The rest of yours debts will be resolved relatively quickly – typically in a 3-4 month period
- If you think that these benefits may be best for your situation, then you should consider filing for Chapter 7.
Benefits of Chapter 13
Those who opt for Chapter 13 bankruptcy will be granted different benefits than those who file for Chapter 7. These individuals will see the following advantages:
- The prevention of repossessions or foreclosure
- Most unsecured debt will be eliminated, over time, through a court-approved repayment plan
- Valuable assets will be completely protected from creditors
If these benefits seem right for you, then Chapter 13 may be the debt resolution path you should take.
Contact Us
If you would like to learn more about bankruptcy and determine whether or not it is the right solution for you, contact the Austin bankruptcy attorneys of Slater, Kennon & Jameson, LLP today at 512-338-1100 to speak with one of our qualified lawyers.