What are the Benefits and Advantages of Filing Chapter 7 Bankruptcy?

The main purpose of filing bankruptcy is to give deserving debtors an opportunity for a fresh start Chapter 7 bankruptcy is the most common form of bankruptcy filed in the United States. Businesses and individuals can file Chapter 7 of the United States Bankruptcy Code. The Chapter 7 filing process involves liquidating nonexempt assets and distributing the proceeds to creditors in accordance with the provisions of the U.S. Bankruptcy Code. In keeping with providing deserving debtors with a fresh start, the Bankruptcy Code allows you to keep certain exempt property.

The benefits of filing a chapter 7 petition include the following:

•    Stop harassment from creditors
•    Stop all collection efforts from creditors
•    Halt foreclosure proceedings temporarily; which may give you time to negotiate a modification to your mortgage or find an alternative to foreclosure
•    Discharge eligible debts, which may, among other things, enable you to modify mortgage debts
•    Debt can be discharged in a relatively short amount of time, since Chapter 7 proceedings take only about three to six months to be completed
You should consult with an attorney before filing a petition under chapter 7, or any other chapter of the Bankruptcy Code. You should also be aware that debt counseling or out of court agreements may be an alternative to filing bankruptcy. A no cost initial consultation with an experienced Connecticut Bankruptcy Attorney, RRC-LLC, can help you decide which route is best for your situation.