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What's The Upside Of Filing For Chapter 7 Bankruptcy?

Filing for bankruptcy can be quite intimidating. There are several chapters, and each of them affects you and your financial hardship differently. After filing for bankruptcy, some people find themselves worse off than before. This feeling of remorse or doubt can be very true for those who file for Chapter 7 bankruptcy, where your financial circumstances become a public record and your assets are liquidated down. But Chapter 7 bankruptcy has many upsides that you should know. If you live in New York and contemplate filing for Chapter 7 bankruptcy, continue reading below.

Why Do I Need A Bankruptcy Lawyer?

Filing for Chapter 7 bankruptcy can be very beneficial. Despite how horrible you might feel about having to file or how concerned you might be about your future, Chapter 7 bankruptcy isn't as terrible as some people have made it out to be. After all, people are more likely to file for Chapter 7 bankruptcy than Chapter 13 bankruptcy, so it must have its positives. That said, you still shouldn't ever decide to file for bankruptcy lightly. It's always in your best interest to speak with a seasoned, knowledgeable New York bankruptcy lawyer before moving forward with this decision. The bankruptcy attorneys at Law Office of Simon Goldenberg are here for you. Call us at (888) 301-0584 or contact us online for a free consultation.

Creditors Leave You Alone

Once you file for Chapter 7 bankruptcy, the bankruptcy court issues an automatic stay that prevents debt collectors from harassing you. They can't request a foreclosure on your home. They can't seize your property. They can't even call you regarding whether and when you can make a payment.

In other words, all collection attempts cease, and you are protected from lawsuits. Even popular and successful artists Toni Braxton and Willie Nelson have filed for Chapter 7 bankruptcy to rid themselves of millions of dollars of debt. Now, you should have a clearer understanding of why.

Full Discharge For Credit Cards

There are many reasons why and how people accrue significant credit card debt. Most often, young people and college students are victimized by credit card lenders. Before they know it, they've dug themselves into a financial hole that they can't climb out. As you know, it's hard to acquire important assets without being approved for a line of credit (e.g., car, home, personal loan). Fortunately, all credit cards will be fully discharged without repayment to the creditor or loss of assets if you file for Chapter 7 bankruptcy.

Full Discharge For Auto Repossession

If you're like most of us, you need your car for most activities. You need your car to drive to school or work. You need your car to transport your children. You need your car to grocery shop and visit out-of-state relatives. Thus, you can't afford to have creditors repossess your only mode of transportation. If this is your concern, it may offer you some relief to know that auto repossession is off the table once you file for this chapter of bankruptcy.

Full Discharge For Medical Bills

No one wants to get sick. No one tries to become ill. But an unexpected tragedy can occur that lands you in the hospital for an extended time. Whether you incur excessive medical bills due to a long-term ailment, such as cancer, or you accrue high medical bills from a heart condition that required surgery to fix, unfortunately, you may not always have the money you need to pay for medical treatment. Lack of health insurance and impoverishment are common reasons that sick people don't get to a doctor as quickly as they should. If you're someone who requires medical care that you couldn't afford, Chapter 7 bankruptcy will help you.

Under this filing, a bankruptcy court judge will discharge all of your medical debt. You won't even have to risk losing your assets or agreeing to a payment plan with your creditors to receive this benefit. Certainly, knowing that you'll no longer have to pay high medical bills will reduce your stress levels and possibly help your recovery process move along more quickly.

You Get A Fresh Start

Recall that this chapter is significantly different from Chapter 13 bankruptcy; with Chapter 7 bankruptcy, rather than a creditor putting you on a payment plan, your assets are liquidated so that a majority of your debts are paid off in as little as six months. Thus, a well-known upside to filing for Chapter 7 bankruptcy is that it allows you to begin anew. Not to mention, it's likely to raise your credit score in a few years so that there is a broader range of housing and car leasing opportunities for you.

Bear in mind that you'll continue to pay child support and spousal support if you owe it. However, a family court judge and divorce court judge will likely reduce your monthly payments. How can this happen, you might ask? New York judges adhere to specific child support and spousal support guidelines, adjusted based on income. If your financial circumstances change substantially—and Chapter 7 bankruptcy is substantial—you can request significant reductions for both payment obligations. This is bound to make your new life more manageable.

Experienced New York Bankruptcy Lawyers

Law Office of Simon Goldenberg helps New York clients address financial dilemmas through bankruptcy or other legal avenues. You deserve a fresh start. To consult with Law Office of Simon Goldenberg, call (888) 301-0584 or contact us online today.