Deciding whether to declare bankruptcy is a tough decision. Debt affects your credit, your reputation, and your assets. Determining whether to file Chapter 7 or Chapter 13 bankruptcy is also a tough choice because everyone’s situation is different. Huebner Bankruptcy has put together a list of the pros and cons of Chapter 7, so you can determine if it is the right choice for you. For more assistance, contact our Fort Worth bankruptcy lawyer today at (817) 576-1889!
Pros of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common form of bankruptcy that erases the majority of an individual’s debt. Depending on your situation, Chapter 7 may be worth it; on the other hand, your best option might be filing under a different type of bankruptcy.
The pros of Chapter 7 bankruptcy include:
- The process from filing to discharging of debt takes 3 to 6 months
- You may be able to keep exempt property and the salary or wages you earn after you file
- You may be able to receive a new line of credit within 1 to 3 years after filing for bankruptcy
- Chapter 7 doesn’t require you to have debts of any specific amount to file for relief
Cons of Chapter 7 Bankruptcy
Chapter 7 bankruptcy might not work for you depending on your situation. There are cons to chapter 7 that can affect your case.
The cons to Chapter 7 bankruptcy include the following:
- Chapter 7 bankruptcy can remain on your credit report for up to 10 years
- You can lose property you own that is not exempt from sale by the bankruptcy trustee
- You will lose all your credit cards
- It will be difficult to get a mortgage if you don’t already have one
- You cannot file for Chapter 7 if you previously filed within the last 6 years
Get Started on Your Bankruptcy Claim Today!
Filing for bankruptcy is a stressful time, which is why it is vital to have an experienced bankruptcy attorney guide you through the process. If you have additional questions regarding Chapter 7, our attorneys can help you. As a Fort Worth bankruptcy lawyer with more than 18 years of legal experience, you can trust us to fight for your financial freedom.
Huebner Law Firm has helped hundreds of families recover from their difficult situation. Contact us today at (817) 576-1889!