Certainly no one relishes the idea of filing for a Chapter 7 bankruptcy. It is a complicated legal process, with many details that you will need to keep track of. However, if you or your business is in serious financial trouble, you may want to consider the benefits of an Austin Chapter 7 bankruptcy.
Some of the advantages you may enjoy by filing include:
- Ending calls from creditors. When you file, the judge will likely issue an automatic stay. This will stop your creditors from calling you, sending you letters, or taking legal action against you.
- Discharging your debts. Unlike a Chapter 13 bankruptcy, which involves regular payments to your creditors over the next 3 to 5 years, a Chapter 7 bankruptcy may be able to immediately dismiss much – or even all – of your debt.
- Restoring your credit score. It is true that a bankruptcy will remain in your record for some time, but at the end of that time period your score can be clean. Even with a bankruptcy on your file, you can still work to improve your credit rating.
- Rebuilding your life. Filing for bankruptcy is often a difficult decision to make. However, once your debts have been discharged by the bankruptcy court, you could qualify for loans that will help you start your life over again.
A qualified Austin Chapter 7 bankruptcy attorney can help you decide if these benefits outweigh the costs of bankruptcy for you.