Benefits and Drawbacks of Chapter 7

: Chris Lee Law Firm

  Filed under: Chapter 7

ch 7Chapter 7 Dallas bankruptcy is a powerful tool in the fight against debt. Many debtors have been able to use Chapter 7 to get a new start on their financial lives, relieving themselves of the burden of huge debt and starting anew. Here we have a quick rundown of some of the main benefits and drawbacks of choosing Chapter 7 Texas bankruptcy.

 Quick Discharge

One of the main benefits of Chapter 7 bankruptcy is a quick discharge. Typical Chapter 7 cases take six months or less, and at the end of that time frame you will have a fresh start, with all your unsecured debts wiped out in the discharge. You can file Chapter 7 Dallas bankruptcy no matter how much secured or unsecured debt you have; by contrast, there are strict ceilings on the amount you can owe to qualify for Chapter 13.

In addition, Chapter 7  bankruptcy allows you to discharge your debts without resorting to a long-term repayment plan that can hamstring your finances for the entirety of the repayment period.

Property

Probably the main drawback in filing Chapter 7  bankruptcy is that your property may be subject to seizure and sale in order to repay part of your debts. The good news on this front is that often your house and car can be exempt from sale, so in many cases you are able to keep these.

The other main drawback is that your secured debts and other non-dischargeable debts will remain in full force after the discharge, meaning you are fully liable to get back into good standing with these debts. This will likely be easier to accomplish now that your unsecured debts are wiped out, but if you are far in arrearage, it can still be a long climb


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