What are the pros and cons of filing for Chapter 7 bankruptcy? Many people have reservations about going this route. They fear the impact it might have on their future and the opinions others might have about it. It is certainly not a topic meant for small talk or conversation among friends. There is a stigma about filing for bankruptcy; the bases of these claims are simply untrue.
At Alexander Hilton & Associates, we want to shed some light on the bankruptcy process. We are knowledgeable but also compassionate. Bankruptcy can give you the fresh financial start you need. It does not mean that you have lost control—it means that you are taking responsibility and creating a better financial future for yourself.
What Is Chapter 7 Bankruptcy?
Another name for Chapter 7 bankruptcy is “total liquidation” bankruptcy, where all of your eligible assets are sold off and used to pay off the creditors whom you owe. Essentially, it will eliminate the vast majority of your debts so that you can start off your financial life with a blank slate.
The benefits of Chapter 7 bankruptcy include the following:
- The process is rather quick, taking only about 3 to 6 months.
- Many of your properties can be considered exempt from bankruptcy, which means that you will not necessarily lose all of your property.
- Your credit card debt will be wiped; however, keep in mind that you may not be able to file for another credit card for a few years after filing.
- You will no longer be burdened with heavy financial obligations, as many debts that can be wiped in bankruptcy court can be included.
- The sooner you begin rebuilding your financial life, the sooner you can recover.
There are cons to Chapter 7 bankruptcy as well. For example, it can be harmful to your credit for some time, as it will remain on your credit report for as long as 10 years. Fortunately, you still have a chance to establish new lines of credit, even if you are considered a “higher-risk” borrower, which means you might have higher interest rates.
Consult with a Seasoned Oklahoma City Bankruptcy Lawyer
At Alexander Hilton & Associates, we are dedicated to our clients’ satisfaction first and foremost. Choosing bankruptcy is not easy, but it also can help put a stop to the worries and stress that owning a large amount of debt can bring.
- Related Reading: How Is a Debtor Protected in Bankruptcy?
We urge you to contact us right away for legal counsel. We can help you build the foundation for a bright, financial future.