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When It Comes to Filing Bankruptcy Chapter 7 Is a Popular Choice

When It Comes to Filing Bankruptcy Chapter 7 Is a Popular Choice
"""Because the economy is still on life support, a great number of Americans have found themselves mired beneath a mountain of debt from which there is no feasible escape. In this situation, it is preferable to file for bankruptcy sooner rather than later. Why wait until the harassment from creditors becomes unbearable? Why wait until you're threatened with a lawsuit, a judgment, a wage garnishment, or a home foreclosure to seek debt relief? Many people associate bankruptcy with failure, humiliation, and disgrace, which is unfortunate. The truth is that bankruptcy was designed to provide honest individuals with a clean financial slate and a prosperous future.

Chapter 7 bankruptcy is currently the most prevalent option for declaring bankruptcy. One explanation is that the procedure is relatively quick. From start to finish, a Chapter 7 bankruptcy typically takes between three and six months. The concept of becoming debt-free or nearly debt-free in a matter of months is appealing to many individuals who are buried in debt. Another reason for Chapter 7 bankruptcy's popularity is its low filing fee. A Chapter 7 bankruptcy can be significantly less expensive than a Chapter 13, which is the other form of bankruptcy most people consider.

Of course, there are variations in attorney fees based on location, but a Chapter 7 bankruptcy typically costs less due to the reduced amount of labor and time involved. A Chapter 13 bankruptcy case will last for the duration of the repayment plan, which is typically three to five years, whereas a Chapter 7 bankruptcy case will conclude within three to six months. Due to the fact that many individuals who are contemplating bankruptcy are cash-strapped, finding the funds to pay for a bankruptcy and an attorney is a concern. In Chapter 7 bankruptcy, there is no repayment plan, which is another reason for its popularity.

As previously stated, Chapter 13 requires debt repayment over three to five years, whereas Chapter 7 eliminates all unsecured debt in a matter of months. Chapter 7 bankruptcy is king when it comes to swiftly eliminating unsecured debts like credit cards, utility bills, medical bills, auto repossessions, personal loans, mortgage foreclosure obligations, and even some old taxes.

The majority of individuals who are contemplating bankruptcy feel as though they have reached the end of their financial tether. However, declaring bankruptcy is not the end of the world; rather, it represents a fresh start. Currently, we are all experiencing a financial crisis characterized by declining home values, rising unemployment, skyrocketing gasoline prices, and rising inflation. Why wait to lose everything when bankruptcy is a viable option for many individuals seeking a new beginning? For many financially burdened individuals, Chapter 7 bankruptcy can be a quick and easy route out.

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"When It Comes to Filing Bankruptcy Chapter 7 Is a Popular Choice" was written by Mary under the Finance / Wealth category. It has been read 123 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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