Why Choose A Chapter 7 Bankruptcy?

Consumers should choose a Chapter 7 Bankruptcy if they have liabilities that exceed their assets or their income is under the median for the state they’re in, and the consumer does not have substantial assets which they intend to keep. The purpose of a Chapter 7 Bankruptcy is a “fresh start”, in which the debt that the consumer/debtor has accumulated over the years will be discharged, meaning the consumer will no longer have the obligation to pay these debts. Chapter 7 Bankruptcy is the most common form of Bankruptcy because most consumers want to “wash their hands” of their debt and start over. This is the only Chapter of Bankruptcy Code that releases the debtor’s obligation to pay debts immediately upon the filing of the case. Other Chapters of the Bankruptcy Code require payment plans over time, etc. This is a process that can happen within six to eight weeks, unlike other Chapters of Bankruptcy Code where the discharge of debts can take three to five years.