From Chapter 11 to Chapter 13, there are different options on the table for those who are considering bankruptcy. In this blog, we will examine some of the reasons why Chapter 7 can be advantageous for some people in Morristown and across the state of New Jersey. Even though a number of benefits may come with taking this route, it is pivotal to carefully assess all of your options and make sure that you have found the best direction forward given your personal circumstances.
Unlike Chapter 13, Chapter 7 bankruptcy does not require a court-approved payment plan. As a result, those who file for Chapter 7 will not be required to continue making payments after the bankruptcy is complete. Moreover, future income is typically not considered part of the bankruptcy estate (although some property that is acquired in less than 180 days after filing for bankruptcy is included in the bankruptcy estate, such as death benefits, inheritance and funds from a life insurance policy).
While Chapter 13 bankruptcy places a limit on how much debt someone can have when filing for bankruptcy, there are no such limitations with Chapter 7. Moreover, as with all other types of bankruptcy, Chapter 7 can provide someone with a sense of freedom and a new start on their life. Whether personal debt was causing them to lose sleep or preventing them from moving forward with some of their plans and goals, eliminating debt can completely turn someone's life around.
Although Chapter 7 has a number of perks, it is essential to carefully review all relevant issues before filing for bankruptcy.