How Long Does Chapter 7 Take?
- You do not have a lot of real assets. Normally, Chapter 7 bankruptcy affords less protection for your property than Chapter 13 bankruptcy. However, Chapter 7 bankruptcy exemptions often let you keep furniture, clothing and tools, as well as your home and car or truck.
- Have a lot of medical and credit card. Filing Chapter 7 bankruptcy typically quickly does away with such unsecured debts as unpaid credit card and medical bills. Within months, not years, you can often be debt-free.
- You have a low credit score. Although filing for bankruptcy affects your credit score for 7-10 years, it probably will not make a big difference if your credit score is already sub-par. And, the good news is that when your family’s debt is discharged, you can steadily improve your credit rating. Also, during that time period, many people just like you have been able to qualify for a home mortgage or auto loan.
- You have been getting harassing collection notices and phone calls. When you file for Chapter 7 bankruptcy, collectors are legally prohibited from contacting you. Instead, they will have to deal with your bankruptcy lawyer and the courts. How nice would it be to get through dinner with your family without the fear of frightening phone calls?
- Your debt is bigger than your paycheck. If you pass the “means test”, meaning you qualify for Chapter 7 bankruptcy, your attorney can get your paperwork organized and filed quickly, so you can get back on your financial feet.