If you’re trying to manage overwhelming debt, you’re not alone. Many individuals and families in Eugene are facing crippling debt through circumstances that may not be their fault. As we’ve discussed previously, financial hardship can hit suddenly through unemployment, an injury or unexpected illness. At the Law Office of Kim Covington, we strive to help people who are struggling with debt. One method that has been effective for countless people is Chapter 7 bankruptcy.
Chapter 7 is a type of bankruptcy that can help you start over with a fresh financial slate. If you’ve been considering bankruptcy, you might have heard conflicting information from well-meaning friends and associates. It can help to know the basics about Chapter 7 bankruptcy. Like any major financial decision, Chapter 7 has both pros and cons. According to Money Instructor, the benefits can include the following:
- Your creditors will no longer be able to demand payment from you.
- After filing, you can receive an automatic stay, which will stop creditor harassment while you go through the bankruptcy process.
- It can take as little as six months to complete a Chapter 7 bankruptcy, while traditional debt repayment might take years.
- You may be able to hold onto some assets, such as vehicles, if you can show the court that they are necessary for work.
On the other hand, you will need to understand that a Chapter 7 discharge will negatively impact your credit for several years. During this time, your ability to get a new loan may be impacted. You might lose some assets in liquidation to repay your creditors, such as your home.
For more information on Chapter 7 bankruptcy, visit our page. The information you find there may help you become better informed about your debt relief options.