Many bankruptcy filers look to Chapter 7 as a potential option for debt discharge and credit rebuilding. This post discusses some of the advantages of filing through this process.
A High Probability of Success
As long as you’ve never filed bankruptcy before, pass the means test, and are honest throughout the process, you could wrap the Chapter 7 process in approximately four months and earn your bankruptcy discharge.
The ‘Automatic Stay’
As soon as your case is filed with Arkansas’ Bankruptcy Court, you’re protected from creditors. This is known as an “automatic stay” on all collections. All phone calls, garnishments, and collection letters must stop, and repossessions, evictions, and foreclosures must temporarily halt.
Potential Permanent Debt Relief
A Chapter 7 bankruptcy discharge clears most debt, including credit cards, medical bills, and personal loans. Once you’re granted a bankruptcy discharge, you no longer have an obligation to pay these unsecured debts.
You’ll Probably Get to Keep Most of Your Things, Including Your Car
Bankruptcy law protects a variety of property from creditors. This includes Social Security checks, certain belongings, and other things that fall under the exemption rules. You may even be able to keep your car as long as you’re willing to pay for it. (You could also give it up as part of a potential discharge plan.)
A New Chance for Financial Health
Most people begin seeing an improvement in their credit score about a year after filing for Chapter 7. It is worth noting that getting your credit back to a good level will take a considerable amount of time. You’ll also notice an uptick in credit card offers right after you file, and you may have access to specific “credit rebuilder” cards meant for those looking to start over post-bankruptcy.
Chapter 7 bankruptcy is a great option for many people looking to resolve their financial woes. However, it’s a process that shouldn’t be taken on alone. Arkansas filers trust Natural State Law with all of their bankruptcy needs and to help them through the process. Call (501) 916-2878 to learn more and schedule a free consultation.