TOP 10 BENEFITS OF BANKRUPTCY - CHAPTER 7

TOP 10 BENEFITS OF BANKRUPTCY - CHAPTER 7

1.         Stop Creditor’s Harassing Calls. Creditors call at almost all times of the day and night and the weekend as well; they intentionally look for inconvenient times to add additional pressure on the debtor. The automatic stay in bankruptcy law makes it illegal for creditors to continue those calls or any other form of harassment the moment you file for bankruptcy.

2.         Keep your house and car. A myth of Chapter 7 bankruptcy is that you will lose your belongings.   As long as you don’t have too much equity in your home, you keep the house (otherwise you'd file Chapter 13 in order to protect an abundance of equity).  Bankruptcy is about protection and Attorney Mark Williams can help you with which Bankruptcy Chapter is best suited for you.

3.         Protect most of your household possessions. The state and federal exemptions that block what a bankruptcy trustee can seize typically cover all household goods and tools of a trade. Even if you have valuable jewelry or electronics, they often are not seized because of their age and condition. In fact, in 90 percent of all Chapter 7 cases, no property at all is seized.

4.         Wipe away unsecured debt. The amount you owe on credit cards or any debt (that is unsecured) can be completely liquidated if you qualify for Chapter 7 bankruptcy.

5.         Help with secured debt. With no more unsecured debt, paying the monthly mortgage and car note becomes much easier again. For many debtors, spiraling  unsecured debt eventually makes it impossible to pay all creditors every month; our debt relief agency with Attorney Mark Williams can help you with that!

6.         You Can Qualify. There is an income limit with Chapter 7 which is determined through a Means Test. That’s a process to determine if you have any leftover income at the end of the month to pay unsecured creditors. Notwithstanding our salary, if there is little or no money left over at the end of the month, you may qualify for Chapter 7 bankruptcy.

7.         You may never see the bankruptcy judge. Under the Chapter 7 process, there is one mandatory appearance before the bankruptcy trustee during the creditor’s meeting. While it’s possible questions from the trustee or creditors could lead to a hearing before in bankruptcy court, the overwhelming majority of cases do not involve court appearances. 

8.         Take a deep breath. While you wait to find out if you qualify for Chapter 7, you have the opportunity to relax a little from the financial pressures. The automatic stay stops any harassing calls and you do not have to pay your unsecured creditors while in bankruptcy.

9.         Fast and easy. If there are no complications, a Chapter 7 bankruptcy case can be over in as little as 4 to 6 months.

10.       Start over more quickly. The fact that Chapter 7 is a straight bankruptcy; you can begin changing your financial habits and re-establishing your credit quicker than you’d predict.

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.