There are many Chapter 7 bankruptcy benefits for Watertown, NY, residents if you meet the income requirements. For most people, it helps to discharge the majority of their debts, allowing them to focus on the financial responsibilities that they can afford.
At Grady BK, PLLC, our goal is to provide our Watertown, New York, clients with the legal representation they need as they navigate the bankruptcy discharge process. We understand how important debt relief in Watertown, NY is, especially if you are in a difficult financial situation. We can help you weigh the Chapter 7 bankruptcy benefits to determine whether or not this is the right fit for your situation. In this article, we will be discussing the benefits of filing for Chapter 7 when you want a fresh financial start in NY.
Key Benefits of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a very popular option for Watertown residents, but what are the main things you get from choosing this bankruptcy option? Although starting the bankruptcy process can feel overwhelming, Chapter 7 provides a variety of benefits that can help you get back on track with your financial goals.
Here is a breakdown of the three key benefits of filing for Chapter 7 if you are struggling with debt.
Fast Process
Despite what many people think, filing for bankruptcy does not have to be a lengthy process. In fact, one of the main Chapter 7 bankruptcy benefits is that it only takes between 4 to 6 months to complete.
When your debts are discharged, the bankruptcy process will be over, and you won’t have any other bankruptcy responsibilities.
Financial Protection
Possibly, the biggest benefit of filing for Chapter 7 bankruptcy is that an automatic stay will go into effect when you file your petition. An automatic stay is a legal barrier that protects you from any collection efforts from creditors. This includes collection efforts such as foreclosures, repossession, and other forms of harassment.
No Repayment Plan
Unlike filing for Chapter 13 bankruptcy, which is another very popular option, Chapter 7 does not require a repayment plan. This allows you to file for bankruptcy and complete the entire process in a matter of a few months.
Impact on Assets and Property
Aside from understanding the Chapter 7 bankruptcy benefits, you also need to understand how Chapter 7 treats assets and property. After all, most Watertown, NY, residents will have some assets or property that they don’t want to lose when they file for bankruptcy.
According to New York bankruptcy laws, you have state and federal exemptions you can choose from. Exempt property and assets are things that creditors cannot use to pay off debts, allowing you to keep them when you file for bankruptcy.
Some examples of exemptions you could possibly take advantage of include:
- Life insurance exemption
- Vehicle exception
- Homestead exemption
- Personal property exemption
- Retirement exemption
Keep in mind that you may not qualify for all of these exemptions as they are dependent on the value of the asset and property.
However, it is likely that you will be able to hold onto important assets and belongings, such as your main vehicle and personal property. This will be dependent on the value of the asset, how essential it is to your life, and whether or not you are up-to-date on your monthly payments.
A Watertown bankruptcy attorney can help you determine what assets are exempt and non-exempt. They can also help you find alternative ways of better protecting assets that you do not want to lose.
How Chapter 7 Can Help You Get a Fresh Start
If you want a fresh financial start in New York, you may be wondering if Chapter 7 bankruptcy can help you achieve this. Although bankruptcy can be a scary step to take, it may be necessary if you are in a significant amount of debt.
Chapter 7 can help you pursue your financial goals by eliminating your most significant types of debt. This includes unsecured debts, such as credit cards, medical bills, and personal loans. When these debts are eliminated, you are able to use your financial resources more effectively towards things like your mortgage or car payment.
Contrary to popular belief, Chapter 7 does not damage your financial future as much as you may think. It will be automatically removed from your credit after 10 years, allowing you to rebuild your credit over time. Also, you won’t lose everything you own, as there are plenty of exemptions you can take advantage of.
FAQ Section
What debts are eliminated in Chapter 7?
Chapter 7 eliminates unsecured debt, which includes any debt that has been created without collateral that has been promised to the creditor.
How long does the process take?
The entire Chapter 7 bankruptcy process only takes 4 to 6 months on average before being completed.
Can I file for Chapter 7 if I have a job?
Having a job will not impact your eligibility to file for Chapter 7 bankruptcy; however, your income can impact your eligibility.
Will bankruptcy ruin my financial future?
If you file for Chapter 7, this will not ruin your financial future as it will only remain on your credit report for 10 years.
Watertown’s Top Compassionate Bankruptcy Attorney
If you are considering bankruptcy for your financial situation, you need to consider the benefits of filing for Chapter 7 bankruptcy. At Grady BK, PLLC, we can help you determine if you qualify for Chapter 7 as well as start the filing process. Having a Watertown bankruptcy attorney on your side can help you better understand your options so that you can proceed with confidence and peace of mind.
At Grady BK, PLLC, our goal is to provide our clients with the one-on-one approach they need as they navigate the unique aspects of their bankruptcy case. We will tailor our approach to fit your bankruptcy needs, whether you are ready to file for Chapter 7 or you are still evaluating your options.
Contact us today at 315-299-9005 to discuss your financial situation with a bankruptcy attorney in Watertown. Our team at Grady BK, PLLC, is here to provide you with the legal assistance you need as you file for Chapter 7.
