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Home  >  Articles  >  Advantages of Chapter 7 Bankruptcy

Advantages of Chapter 7 Bankruptcy

When financial strife overwhelms an individual or corporate entity in Cedar Rapids, it can be tempting to ignore debts and hope that financial difficulties will naturally resolve over time. Unfortunately, these troubles usually do not just disappear and ignoring them can create much larger problems down the road. Filing for Chapter 7 bankruptcy may allow a fresh start and is a good option for those looking to absolve a large amount of debt over a small period of time.

Why Choose Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is an option available to individuals, partners, or corporate entities, and involves the discharge of debt through the liquidation of assets. There are a number of reasons to choose Chapter 7 bankruptcy, including:

  • Automatic stay prevents creditors from contacting you
  • Can be over in as little as 3 months, whereas the payment plans under Chapter 13 can last upwards of 5 years
  • Discharges most debts
  • Unlike Chapter 13 bankruptcy, there is no debt limit

The process of petitioning for bankruptcy can be complicated, but a Cedar Rapids bankruptcy lawyer from Hong Law, PLC, can help you make an informed decision about whether Chapter 7 or another bankruptcy procedure is the right option for you.

Contact a Cedar Rapids Bankruptcy Lawyer

The Cedar Rapids bankruptcy lawyers of Hong Law, PLC, can help you determine whether or not bankruptcy is the best option for your situation and, once you have decided, they may walk you through every step of the filing process. For more information on Chapter 7 bankruptcy and how we may help you during this difficult time, call our offices at (319) 294-5853.