A variety of circumstances can result in ordinary people having to deal with the stress of past-due debts they find difficult to pay. For anyone dealing with severe financial problems, mundane tasks like answering the phone or checking the mail can cause anxiety.
However, options exist for much-needed financial relief through various forms, including Chapter 7 and Chapter 13 bankruptcies.
Choosing a Chapter 7 filing
The act of formally filing for either type of bankruptcy provides immediate relief from creditors continually calling and filling up mailboxes with demand letters. For those looking for a faster route in resolving their financial problems, a Chapter 7 liquidation represents a much shorter process. A Chapter 13 filing reorganizes debts and represents significantly more time to get to that all-important “fresh start.”
Filing Chapter 7 bankruptcy involves requesting that the court wipe out contracts covering credit cards, car loans and medical bills. Complying with the obligations and meeting all the criteria will make you eligible for a debt discharge that will let creditors know that you meet the requirements in the filing of a Chapter 7 bankruptcy. That notice will stop any collection efforts, an important moment for someone enduring years of collection calls and outright threats of repossessions.
While each case is different, the average time it takes to formally discharge debts in a Chapter 7 proceeding is approximately six months or less. Going the route of Chapter 13 reorganization can last up to five years.
Putting off such an important decision only creates more stress and uncertainty. Taking action by calling an experienced bankruptcy attorney can represent the first step toward overcoming your debt.