Planning To File For Bankruptcy? Why Chapter 7 Bankruptcy And Not Chapter 13

It takes a lot of time and effort for people to admit that their finances are no longer working and seek the right financial help. Sadly, most people do it when there is little you can do to salvage their finances. However, once you have decided to get help putting your finances back in order, you will be faced with the decision of whether you ought to file for bankruptcy or not. If you decide that filing could be beneficial, you can choose between chapters seven and thirteen. Here are the four main reasons it is a great idea to file for chapter seven. 

You Get a Fresh Start

Going down the rabbit hole that is the inability to handle your finances leaves you feeling inadequate and vulnerable in countless ways. The creditors will be looking for you at home, in your workplace, and even contacting relatives to try and reach you. They might also take your personal property and try to auction it to cover what you owe them. When you file for bankruptcy, you'll get discharged from paying massive debts. The lawyer will arrange a sensible repayment plan for all the debts that will not be dischargeable. It will help protect you from becoming destitute. 

You Retain Future Income

Consider chapter 7 bankruptcy because it is the only option that allows you to retain the income you may receive in the future. Inheritance, property from a divorce settlement, death, and insurance benefits become part of the bankruptcy estate once you file. However, any other income you acquire after filing for chapter seven won't be part of the bankruptcy estate. And therefore, it gives you the fresh start that you definitely need to reorganize your life after making a mistake.

No Limitations to Debt Amounts

You should also consider chapter seven because it doesn't limit the debt you should have to qualify. Also, you do not have to strictly follow a court-approved debt repayment plan, which happens when you file for Chapter thirteen. Because of this wriggle room, discharging debts under chapter seven is easier than when you file for Chapter thirteen.

You get countless benefits when you file for chapter seven. The crucial step is consulting with a competent lawyer and understanding what the law requires from you to set the settlement process in motion. They will help you get the fresh start you need with your finances. 

To learn more, contact a company like Ozment Law PA.