Is Chapter 7 bankruptcy still the gold standard for debt relief?

by | Sep 27, 2021 | Uncategorized |

Modern life gives you too many ways to fall deeply into debt. Many people need credit cards just to cover their basic bills every month, meaning that they slowly develop a balance that they can never truly pay off. It is common for people to have multiple cards that they owe thousands of dollars on in total.

Even if you avoid credit card debt, all it takes is a car crash or a fall down the stairs to leave you with thousands of dollars in medical bills that you cannot pay on your own. There may be many debt relief programs out there, but Chapter 7 bankruptcy remains the gold standard for handling unsecured debts.

Filing for Chapter 7 bankruptcy has helped thousands of individuals regain control of their finances by quickly and efficiently discharging their unsecured debt.

Why is Chapter 7 bankruptcy the go-to solution for credit card or medical debt?

You may have the best intentions about paying off your debt, and it may only be when the credit card company serves you because they want to sue you that you realize you don’t have control over your finances. You need a solution that will be quick and save you from a garnishment.

With a Chapter 7 filing, you may only be a few months away from the discharge of your unsecured debts. The cessation of collection activity is even closer. As soon as you file the initial paperwork, your automatic stay protects you from future collection activity. It can even lead to the dismissal of a pending lawsuit.

You will have to report your income and assets, and sometimes there will be a requirement to sell or refinance certain assets. However, you can exempt much of your property. After your discharge, you will no longer be subject to any collection activity for the discharged debts.

Why is Chapter 7 a trusted solution?

While there is a possible requirement to liquidate or sell off certain assets, Chapter 7 bankruptcy does not leave you with new debts. Many other so-called debt solutions really just move your debt from one location to another.

Rather than transferring your balance, consolidating your debts or trying to settle them, it may be time to explore whether discharging them in bankruptcy wouldn’t be the best way for you to balance your budget and end that frustrating collection activity.

Understanding how beneficial Chapter 7 bankruptcy can be might make you feel more comfortable with filing for it.