Once your Chapter 7 eligibility has been determined, it’s important to consider whether the unique benefits and drawbacks of bankruptcy make filing an optimal path forward for you. Savage Villoch Law can work with you directly to understand your specific circumstances and balance these factors to help determine whether you should file.
First and foremost, Chapter 7 can grant you quick and complete relief from your unsecured debts – it’s the fastest and most common form of bankruptcy, and the vast majority of those who file will get relief. Any of your financial obligations that are not backed by collateral can be discharged – think your credit card debt, medical bills, and personal loans. In a typical Chapter 7 case, these debts will be discharged within three to six months of filing, and your creditors must stop attempting to collect as soon as your petition is filed.
Forcing your creditors to stop calling you is really a two-fold benefit of bankruptcy. First, you can rest easy knowing that collectors won’t be calling you or otherwise bother you while the bankruptcy court is considering your case since collections are paused until the court determines whether you’ll receive Chapter 7 relief. Second, the quick turnaround for Chapter 7 cases offers you a jump start on rebuilding your financial future, especially when compared with the years-long repayment plans generally used in a Chapter 13 reorganization bankruptcy.