Filing for bankruptcy is never something you want to take lightly. But if you’re struggling to pay your bills and are tired of creditors hounding you about late payments, it can help alleviate some of that stress. When you first start working with your Myrtle Beach bankruptcy lawyer, you’ll have to see if you qualify to file for Chapter 7 bankruptcy or Chapter 13. Both can help reduce your stress, but Chapter 7 bankruptcy offers some unique benefits. Here’s how Chapter 7 may be able to help you.
It Gives You a Clean Slate
The biggest benefit of Chapter 7 bankruptcy is its ability to wipe many types of debts away completely. Chapter 7 will eliminate debts like the following:
- Repossessed/Surrendered Auto loans
- Repossessed/Surrendered Home loans
- Personal loans
- Credit card debt
If you’re struggling with these types of debts and can’t find a way to pay them off on your own, filing for Chapter 7 bankruptcy will let you settle those debts so you can start over. Keep in mind that any unprotected assets may be used to satisfy or settle your debt, so speak with your attorney about any assets you have. If you’re worried about keeping your property, you may be better off filing for Chapter 13 bankruptcy.
There’s No Limit on the Debt You Can Claim
When you file Chapter 13 bankruptcy, there are limits to how much of your debt you can file for. As of 2023, you’re only able to apply for Chapter 13 relief for up to $2,750,000 in both secured and unsecured debts. This number may seem high, but debt can add up faster than you might think.
With Chapter 7 bankruptcy, there’s no limit in place. You can owe $10,000,000 or more in debt payments and potentially be able to wipe them away once the filing and proceedings are complete.
You Won’t Have to Worry About Repayment Plans
When you apply for Chapter 13 bankruptcy, your debts don’t go away. Instead, the court helps you establish a repayment plan and you’re expected to make those payments on time each month. If you’re struggling financially, finding the money to make those payments can be stressful at best.
With Chapter 7 bankruptcy, there are no payment plans. Your debt will be discharged, and you can start over without having to worry about finding the money to continue repaying what you owe. That means you may focus on rebuilding your savings and finding ways to improve your financial well-being rather than worrying about keeping up with a repayment plan.
Ready to Explore Your Options?
Filing for Chapter 7 bankruptcy can give you the fresh start you need to rebuild your finances and your credit the smart way. If you’re trying to figure out if bankruptcy is the right fit for you, the best thing you can do is schedule a consultation with an experienced Myrtle Beach bankruptcy lawyer.
At Lam Law Firm, we’re here to help. Contact us today to schedule a consultation and let our experienced team guide you through the process.