Chapter 7 bankruptcy is one of the most common forms of bankruptcy, and it can help people all across Louisiana and, indeed, the entire country. While there are some drawbacks to filing for Chapter 7 bankruptcy, there are some substantial benefits to this type of filing as well.
Chapter 7 bankruptcy will stay on your credit report for years, and it could even be on there for a decade. However, the process itself is relatively short so that you can move on with your life. It usually takes about 3-6 months to fully complete a Chapter 7 bankruptcy.
Losing assets is always a serious concern during Chapter 7, but even though the liquidation process is central to this form of bankruptcy, there are many exemptions that a filer can utilize to protect his or her most important assets and property.
Maybe most importantly, Chapter 7 clears out most of your debts. Certain forms of debt can’t be cleared out — like student loans or child support payments — but many others can, such as credit card debt and medical debt. At the same time, filing for bankruptcy puts an immediate end to any debt collection calls and tactics. The debt collectors are supposed to immediately cease any and all forms of collection once your filing is on record.
There are many other benefits to Chapter 7, and if you have any questions about the process, you should consult with an attorney.
Source: FindLaw, “Pros and Cons of Declaring Bankruptcy under Chapter 7,” Accessed Dec. 22, 2017