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Going Over Some Advantages of Chapter 7

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 beforeĀ filing for bankruptcy.


Get To Know David & Robert

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    David Alan Ast
    Firm Partner David Alan Ast has more than 25 years of experience helping people throughout northern New Jersey get a fresh start and move forward with their financial lives. He is committed to protecting the rights of his clients seeking debt relief.
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    Robert L. Schmidt
    Firm Partner Robert L. Schmidt earned his Bachelor of Arts in Business Administration and Finance from Stockton State College in 1990. Three years later, he earned his Master’s degree from Rutgers University School of Business in Camden with a major in finance. Robert then acquired his J.D. from James E. Beasley School of Law at Temple University in 1997.

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