If you are unable to pay your debt, you should consider filing for a Chapter 7 bankruptcy. If you qualify for this status, it's possible many of your debts may be discharged. There are many reasons to file for this type of bankruptcy and knowing what these are may motivate you to do so.
Reason #1: Low cost
The filing fees for a Chapter 7 bankruptcy are relatively low. The total amount of administrative and court cost fees are only $335 and must be paid before you can begin this process.
If you retain legal services, you should be prepared to pay more and this amount will be based on the attorney's rate.
Reason #2: Discharged debt
If you qualify for this status, it's possible all of your unsecure debt may be paid. This type of debt is not backed by collateral. For example, credit card debt is typically discharged by filing for this status and is a common reason for it being sought.
Reason #3: Automatic stay
One of the largest advantages of filing for this status is that your creditors can't contact you. Once you have started the filing status, it is illegal for a creditor to call your home or send you harassing letters in the mail.
Additionally, the creditor can't file a legal action against you because of your inability to pay. This can prevent the possibility of any of your property being seized, as well.
Reason #4: Get a fresh start
Once you have been found eligible for this status, your debt may be wiped clean, and you can start over financially. This could be the best way to get out of a very difficult financial situation and help you work toward building better credit rating in the future.
Be ready to pay back any loans you obtain to help rebuild your credit.
Reason #5: Fast results
You may be able to complete this process within three to six months from the time you file until completion. This will allow you to have the quick results when it comes to getting your debt paid and get the peace of mind that you deserve.
Finally, this legal status may help you get your debt discharged and allow you to take control of your financial situation. Be sure to rely on the expertise of a bankruptcy attorney if you need assistance with the filing process or to address any questions you may have. (For more information, contact Howard S. Goodman Bankruptcy Attorney)