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Reasons to consider filing for Chapter 7 bankruptcy

Most Americans are aware that there is a legal path out of crushing levels of debt. For most people, that path lies in Chapter 7 bankruptcy. While filing for bankruptcy is never a decision that should be made lightly, there are a number of reasons why bankruptcy is a good option for many Washington residents. The following points focus on the pros and cons of this course of action, in the hopes of making the decision on whether to file easier for individuals and families.

One of the primary benefits to seeking bankruptcy protection is the immediate cessation of all collections efforts. Once the paperwork is filed, no further collection efforts can be made, pending the order of the court. For those who feel that they are under constant attack by bill collectors and creditors, this can bring a significant degree of relief. Even better, Chapter 7 bankruptcy can lead to the discharge of many types of consumer debt, leaving individuals with a far less complicated financial landscape.

It should be noted that the biggest negative associated with personal bankruptcy is the fact that credit scores will take a hit. However, for many people who have lived in serious financial straits for many years, their credit scores are already low. Many people are surprised to find that they will have access to new lines of credit within a very short time after their bankruptcy is completed, which will allow them the chance to rebuild a solid credit score.

When thinking about filing for Chapter 7 bankruptcy, Washington residents must take a close look at their current financial health, and determine if bankruptcy is the right path forward. That answer will differ from one person to the next, and will even change for individuals over time. While personal bankruptcy is not the best fit for everyone, it is certainly a powerful tool that can make a world of difference in one's daily life.

Source: Men's Fitness, "5 reasons filing for bankruptcy could save you from life-crushing debt", Damon Trent, April 24, 2017

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