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Advantages of filing Chapter 7 as opposed to waiting

Some debtors in Massachusetts, for whatever reason, may not want to file a Chapter 7 bankruptcy even if they are in a very difficult financial situation. They may worry what the bankruptcy will do to their credit and to their future financial prospects, and they may also recognize that federal law does indeed limit how often a person can file for bankruptcy.

It is true that a bankruptcy can hurt a person's credit for a long time, but so can getting behind on bills and other debts. In fact, it may be much simpler for a person to explain to a future creditor that he or she ran into hard times and had to file a Chapter 7 as opposed to having to break down each bad mark on a credit report.

It is also true that, in some cases, a person who files a Chapter 7 bankruptcy will have to give up some of his or her property and, in most cases, a person who files will have a harder time obtaining credit. However, obtaining credit after a bankruptcy is not impossible, and the prospects for doing so gets easier as time passes. Moreover, state and federal laws generally protect a person's necessities and important personal items and are oftentimes quite generous in doing so.

A Chapter 7 bankruptcy cannot discharge certain types of debt, though, like child support and most student loans. However, if a person's overall financial situation is a mess, it can provide relief in other respects, freeing up additional income for a person to pay those non-dischargeable debts.

The purpose of this article is to suggest that many times, people's worries about filing bankruptcy may be exaggerated. It can seem like an intrusive process, but it can be a very liberating process as well. While it's not always the right time to file a Chapter 7, sometimes waiting will only mean that a person winds up in worse financial trouble.

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