Advantages of Chapter 7 Bankruptcy
Not everyone will qualify to file for bankruptcy under
Chapter 7 of the bankruptcy code. However, you may wish to understand why Chapter 7 bankruptcy may be the right option for you, what potential benefits are associated with this form of bankruptcy and what to expect. A Long Island bankruptcy lawyer at our law firm can address all of these concerns for you during your consultation, but we have also included some basic information about the advantages of Chapter 7 bankruptcy.
Chapter 7, often referred to as "liquidation", involves the surrender of non-exempt assets to the bankruptcy court, where they are sold to pay off creditors. Although this is true, there is actually property that is specifically protected in bankruptcy proceedings. For a debtor who does not have an extensive amount of property and assets that need protection, chances are that most or all of this property will be protected. As such, one advantage of a Chapter 7 case is that the debtor's eligible assets and personal property will be protected from liquidation. Some of the additional benefits of a Chapter 7 bankruptcy include:
- The discharge of all eligible debt within a reasonable amount of time, sometimes within four months or less.
- Any amount of debt may be discharged with a Chapter 7 bankruptcy filing.
- Once you file for bankruptcy, creditors can no longer continue collection efforts. This includes any pending lawsuits.
- Successfully completed, your Chapter 7 bankruptcy will result in the discharge of all unsecured debt (credit cards, personal loans, etc.)
The specific results that a Chapter 7 bankruptcy in Long Island will have on you will vary depending on your unique case. To discuss whether bankruptcy is right for you and how our firm can help you in filing a Chapter 7 case, contact a Long Island bankruptcy attorney at Jacoby & Jacoby today!