If you are like most people, you know that Chapter 7 bankruptcy can give you major debt relief. What you may not realize, however, is that Chapter 7 offers you quite a few additional benefits as well. Here are five facts to consider.
1. Immediate Relief
As any Rockville bankruptcy lawyer can tell you, Chapter 7 represents the quickest form of bankruptcy. You can expect only three to four months to elapse from the time you file until the time of your ultimate discharge.
2. Numerous Exemptions
Most people mistakenly think that they will lose everything they own if they file bankruptcy. Such is not the case. Not only does Chapter 7 include many exemptions that let you keep much of your property, but you can also keep your wages or salary.
3. Virtually Unlimited Debt Relief
Chapter 7 sets no cap on the amount of debt relief the bankruptcy court can grant you. You can, therefore, expect the discharge of virtually all of your consumer debts, including your credit card debts.
4. Automatic Stay Period
One of the biggest advantages of Chapter 7 in terms of relieving your stress is that once you file, the court issues an automatic stay. This means that all of your creditors must cease and desist calling you on the phone or sending you texts, emails, and/or snail mail demanding that you pay them.
5. Relatively Quick Post-bankruptcy Credit Reestablishment
While it is true that filing bankruptcy will result in the loss of all of your credit cards, in all likelihood this won’t affect you too much since most of your credit card companies have probably already canceled their respective cards. Once your bankruptcy period ends, it should take you no longer than a year or two to reestablish your credit. You can expect to pay higher fees and interest rates for your initial post-bankruptcy credit cards, but if you use them for small purchases only, paying the full balances each month, you can renegotiate their terms after as few as six months. You can also apply for new credit at that point, having already proved your financial responsibility and excellent payment record.