Life may deal its fair share of unappealing cards, but many New Jersey residents could agree that financial stress is one of the most challenging obstacles people face in America today. When it comes to dealing with one's financial woes, there are many paths to solutions; out of those, bankruptcy is one of the most common. Below are some facts about Chapter 7 bankruptcy in particular, including the potential advantages of this plan.
As most consumers know, financial freedom can take on different meanings, depending on the situation. NerdWallet explains that Chapter 7 bankruptcy is not only the most common, but also the fastest type of consumer bankruptcy. Although some consumers may need to sacrifice certain assets, NerdWallet explains that this is not usually the case with this financial plan. Instead, debtors may find relief under federal court in areas of debt such as medical bills, debts without collateral and personal loans. There are, however, many other places of fine print, and consumers should review the ins and outs of Chapter 7 to find out if this plan is the best fit.
Debt informational website Consumer Recovery Network shares a few additional observations of filing bankruptcy, especially the pros and cons of filing Chapter 7. One of the first signs that Chapter 7 may be the best choice involves assets: CRN notes that consumers with few assets may apply for this type of bankruptcy.
Unsustainable debts can also fit into the Chapter 7 category. As for determining whether this plan is appropriate, consumers might also want to consider specific state laws surrounding bankruptcy, as exemptions may vary. One advantage to choosing this plan lies in the quickness of the process; most cases take between three and six months to complete. Ultimately, the consumer can waive all debts from a Chapter 7 bankruptcy. The pros and cons may depend on the situation at hand, but countless consumers find freedom once again after filing Chapter 7 bankruptcy.