Those in Virginia and throughout the country who are struggling to manage their finances may find it helpful to file for Chapter 7 bankruptcy. Although it will impact a person’s credit score, it may also make it easier to create the foundation for a stronger financial future. One of the advantages of filing for a liquidation bankruptcy is that it only takes about three to six months to have debts discharged.
Furthermore, many different types of property are exempt from being liquidated. Any wages earned or property purchased after filing for Chapter 7 bankruptcy may also be protected from liquidation or other creditor claims. In the event that a single bankruptcy filing isn’t enough to overcome financial woes, an individual may be able to file for Chapter 7 bankruptcy again in six years. While there are many advantages to seeking a liquidation bankruptcy, there are some disadvantages as well.
For example, a Chapter 7 bankruptcy will remain on a credit report for up to 10 years. Typically, a debtor who files for this type of protection from creditors will need to relinquish their credit cards. They will also likely need to give up any items deemed to be a luxury by a trustee or bankruptcy court judge. Finally, those looking to buy a home may have trouble getting a mortgage with a bankruptcy on their record.
Those who choose to file for Chapter 7 bankruptcy may be able to obtain a fresh financial start. However, it may also make it harder to obtain credit for the first year or two after a case is discharged. An attorney may be able to explain the consequences of filing for bankruptcy as well as the benefits. One benefit may be the end of creditor phone calls and collection letters.