Benefits Of Chapter 7 Bankruptcy
When you are considering the possibility of filing for bankruptcy, either as an individual or business, you may be looking at different types of bankruptcy and wondering about your eligibility and the specific benefits that come with a bankruptcy filing. Chapter 7 bankruptcy is a type of bankruptcy that both individual debtors and businesses can file, and it can provide benefits to consumers and businesses alike that are struggling with debt. If you have questions about whether Chapter 7 bankruptcy is right for you or your business, you should seek advice from a West Palm Beach Chapter 7 bankruptcy attorney who can help. In the meantime, the following are some of the key benefits of Chapter 7 bankruptcy for both individuals and business owners in South Florida.
Elimination of Debts
One of the most obvious benefits of Chapter 7 bankruptcy, which is a liquidation bankruptcy, is the elimination of debts. Individual debtors who file for Chapter 7 bankruptcy can receive a discharge under the U.S. Bankruptcy Code, while businesses that file for Chapter 7 bankruptcy will no longer be responsible for debts owed by the business. While Chapter 7 bankruptcy works a little bit differently for individuals and businesses, the primary elements of the bankruptcy are the same, which is a liquidation of assets (non-exempt assets) and an elimination of eligible debt.
Once debts have been discharged for a consumer, that consumer can get a fresh start financially and can begin rebuilding their credit. For a business that goes through Chapter 7 bankruptcy, the owners of the business will not have to worry about personal liabilities for existing business debts or related issues.
Unlimited Amount of Debt Can Be Eliminated
In a Chapter 13 bankruptcy case, an individual can only file if their debt is below a certain amount. With Chapter 7 bankruptcy, there is no limit or maximum debt amount, and filers will not have to worry about eligibility based on the total amount of secured and unsecured debt owed. Neither individuals nor businesses are limited by the amount of debt owed.
Chapter 7 Cases Go Quickly
Compared with Chapter 13 or Chapter 11 bankruptcy cases, Chapter 7 bankruptcies are quite quick. While Chapter 13 cases typically take three to five years until completion, and Chapter 11 bankruptcy cases can also take years, Chapter 7 bankruptcy cases take only a number of months. Indeed, most Chapter 7 bankruptcy cases are completed after four to six months from the date of the initial filing.
Contact Our Bankruptcy Lawyers in West Palm Beach
If you are considering Chapter 7 bankruptcy, it is essential to get in touch with an experienced West Palm Beach bankruptcy lawyer as soon as possible to ensure that you meet all requirements for Chapter 7 bankruptcy and to be sure that a liquidation bankruptcy is the right course of action for you or your business. Our firm can provide you with more information about Chapter 7 bankruptcy for businesses and consumers alike, and we can begin working with you today on your bankruptcy case. Contact Kelley, Fulton & Kaplan to learn more about how we can assist you.