Give debt the old heave ho with a Chapter 7 bankruptcy filing
If you are one of the many Florida residents drowning in debt, and you lack the funds to get on top of it, you may be sitting in front of your computer looking for relief options right now. You’ve probably seen advertisements for debt consolidation, payday loans, lines of credit and various other band-aid solutions that will likely do more harm than good.
However, under the right circumstances, you may have the opportunity to give debt the old heave ho instead by submitting a Chapter 7 bankruptcy petition.
Bankruptcy? Won’t that damage my credit? How is that really going to help me? While an approved bankruptcy will show on your credit report for several years, the benefits – even to your credit – can vastly outweigh the downsides of this option.
What is the most significant benefit of filing a Chapter 7?
There are quite a few benefits of filing for bankruptcy, including:
- Stoping creditor calls and harassment
- There is no repayment plan
- Allows you to keep your future income
However, the most significant benefit of a Chapter 7 filing would have to be discharge on your debts. What is discharge? How soon does it take effect after I receive approval of my bankruptcy?
Discharging your debts
A Chapter 7 bankruptcy will discharge certain debts. This means that you no longer owe those creditors anything. For many, this sounds too good to be true, but it can be.
However, not all debts qualify for discharge. Those that do not include:
- Spousal or child support
- Loans for higher education
- Civil restitution orders
- Criminal restitution orders
If you have questions about whether your debts qualify for discharge, an experienced bankruptcy lawyer can review your financial situation and provide you with answers.
How long does it take for debts to be discharged?
Once your bankruptcy petition receives court approval, discharge happens pretty quickly. It may take a couple of days for the court clerk to send out discharge notices to your creditors, but once they are in the mail, this releases you from your obligation to pay those debts.
Is this really my best option?
The answer to this question is different for everyone. For some Florida residents, the answer will be a resounding yes. For others, however, other debt relief options may suit their needs just fine. With some legal guidance, you will have the ability to determine if a Chapter 7 filing is right for you.