Benefits of Chapter 7 Bankruptcy
There are several benefits of Chapter 7 Bankruptcy
Upon filing, the Automatic Stay does the following:
- Eliminate Debt: Chapter 7 Bankruptcy allows you to eliminate debt such as credit card debt, medical bills, and payday loans
- Keep your Assets: Chapter 7 Bankruptcy allows you to keep your most valuable assets including your home, car, and bank accounts
- No Payments to Creditors: In most cases, Debtors do not have to pay anything to creditors in Chapter 7 Bankruptcy
- Stop Harassing Phone Calls: Chapter 7 Bankruptcy stops all creditor calls permanently as long as you obtain a discharge
- Stop Garnishment: Chapter 7 Bankruptcy stops wage garnishment and you may be able to recover previously garnished wages
- Stop Lawsuits: Chapter 7 Bankruptcy effectively eliminates any lawsuit
- Save your Home and Car: Chapter 7 Bankruptcy temporarily stops repossessions and foreclosures
Since the Automatic Stay will stop foreclosures, Chapter 7 bankruptcy provides temporary relief to pursue other options to save a home. For many clients, our office has been able to successfully reaffirm or obtain a loan modification while in bankruptcy.
For more information about bankruptcy and other potential benefits, check out our Chapter 7 bankruptcy frequently asked questions to page.