Filing For Bankruptcy – What Is It And Why Would Someone Do It?
When you think about Chapter 7 Bankruptcy, you probably have a lot of questions. What does it mean? Why would someone consider it? What will happen to me if I file? How long will it take to get my debt discharged? These are just a few of the many questions that can be asked when it comes to filing for bankruptcy. If you are wondering what bankruptcy is and why someone would file for bankruptcy, read on.
What is Chapter 7 Bankruptcy?
Chapter 7 is one of three types of bankruptcy filings. This type of bankruptcy allows the filer to keep all their assets except for a few select items. The filer’s debts are discharged. The filer has no more liability and can start over again.
Why would someone file for bankruptcy?
There are several reasons why someone might file Chapter 7. Some people file because they cannot pay their bills. Other times, people want to start over. It is also possible to file for bankruptcy if you have been sued or facing a wage garnishment or repossession.
How long will it take to get a discharge?
In most cases, it will take about 4 months for your bankruptcy to be discharged. However, it is important to remember that this time frame is not guaranteed. Your case could be delayed by various factors.
Can you still file for again after you get discharged?
Yes. You can even after you have been discharged. You may want to consider filing bankruptcy again if you have fallen behind on your bills and need some extra help. But you will be required to wait 8 years after you have your previous filing. Additionally the bankruptcy will stay on your credit report for 10 years, but you can start rebuilding your credit immediately after your discharge.