Benefits to a Chapter 7 Bankruptcy

In 2010, more than 1.1 million people filed Chapter 7 bankruptcy, an increase of more than 200,000 from 2009. On the other hand, approximately 400,000 people filed Chapter 13 bankruptcy in 2010, which was only an increase of 50,000 since the previous year. Today, Chapter 7 bankruptcy is the “go to” bankruptcy for individuals, more than ever before. Even after the 2005 changes to U.S. bankruptcy law, the number of Chapter 7 filers continued to rise. If you are interested in finding out more about bankruptcy, contact a Chicago bankruptcy attorney.

Chapter 7 bankruptcy is otherwise referred to as the “liquidation” bankruptcy. The appeal of Chapter 7 bankruptcy has to do with its numerous advantages properties. For example, Chapter 7 bankruptcy can be completed in a relatively short period of time, typically within 3 to 6 months of filing. Second, most unsecured debt can be discharged through bankruptcy, allowing the debtor to gain a fresh start. Furthermore, many people are surprised to find out that they are able to keep their personal property, since a substantial number of filers do not have much to begin with.

Once a Chapter 7 is filed, there are two main benefits that occur right away. First off, an “automatic stay” will be placed on all debt collection activity, meaning that creditors are required by law to stop collecting from you for the duration of the bankruptcy. This means, no more harassing phone calls, and no more threatening letters to contend with. Additionally, Chapter 7 bankruptcy is the most effective way to put an immediate stop to wage garnishments. Garnishments can make it nearly impossible to keep up with your everyday living expenses. Once a Chapter 7 has stopped the garnishment, you will be able to use your income to pay your rent, or mortgage, your utility bills, groceries and gasoline; it will give you and your family, the breathing room that you need. One more benefit to Chapter 7 bankruptcy is that you might be able to rebuild your credit much faster than if you did not file in the first place.

Chicago Bankruptcy Lawyer

Making the decision to file for Chapter 7 or Chapter 13 bankruptcy should always be an informed one. If you would like to learn more about bankruptcy benefits, contact a Chicago bankruptcy attorney from Glanzer & Associates, P.C. today!

Contact a Chicago bankruptcy lawyer from our firm for a free initial consultation.