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Benefits of Chapter 7 Bankruptcy

By Derek Prosser

There are many reasons that people find themselves in difficult financial situations. Whether it’s unemployment, medical issues, deaths in the family, the types of unexpected events that can give rise to financial difficulties are numerous. Fortunately, however, bankruptcy offers those going through financial problems a way to start over. And although some people view it in a negative light, bankruptcy offers numerous benefits to those experiencing money troubles. In this article, we discuss some of the many benefits of Chapter 7 bankruptcy.  

Chapter 7 Eliminates Debt

One of the key benefits of Chapter 7 bankruptcy is that it can discharge most unsecured debt. Examples of unsecured debt include personal loans, medical bills, credit card debt, and other types of personal debt. For many people, unsecured debt makes up a significant portion of the money they owe to creditors. 

Chapter 7 is Quick

Chapter 7 bankruptcy is relatively quick. In fact, depending on the circumstances, the entire process can take as little as 100 days. This means that within just a few short months of filing for Chapter 7 bankruptcy, you can be almost completely debt-free and ready to begin rebuilding your financial situation.  

Chapter 7 Eliminates the Need to Deal with Creditors 

One of the worst things about having significant debt is dealing with creditors. After failing to make payments, creditors come calling, and they don’t let up until the debt is paid. Fortunately, after filing for Chapter 7 bankruptcy, the automatic stay goes into effect that prevents creditors from contacting you, and because Chapter 7 bankruptcy discharges most unsecured debt, creditors won’t resume their contact after the bankruptcy process is over. 

Chapter 7 Allows You to Keep Certain Property

Finally, Chapter 7 bankruptcy allows you to keep some of your important property. For example, many people believe you will lose your house and car after filing for Chapter 7 bankruptcy. However, this isn’t always true. There are several exemptions that you may be able to take when filing for Chapter 7 that may allow you to keep your home and vehicle. Of course, every bankruptcy case is different, so it is advisable to consult with a bankruptcy lawyer prior to filing for bankruptcy for guidance on this and other issues. 

Contact a Dallas Bankruptcy Lawyer 

If you are considering filing for bankruptcy in Texas, you should immediately seek the guidance of an experienced Dallas bankruptcy lawyer. At Toronjo & Prosser Law, our talented bankruptcy attorneys will provide you with the information and guidance necessary to make an informed decision regarding bankruptcy. In addition, should you decide that filing for bankruptcy is in your best interests, we will guide you through the process to ensure that you comply with all legal requirements and receive the full spectrum of benefits for your bankruptcy filing. Please contact us today to schedule a confidential consultation with an experienced Dallas lawyer.

About the Author
Derek Prosser understands that clients need help and need answers and that in order to properly address those concerns, clients need to deal with an attorney first and always, not just an assistant or paralegal.  By effectively counseling from the outset of a case, Toronjo & Prosser Law can anticipate and address potential problems before they arise, as opposed to when they’ve already surfaced (the “Counsel Later” approach), and, in the end, strive for a seamless representation.