A Chapter 7 bankruptcy can change your life, and although it may seem negative at first, that change can be a positive influence on your financial future. A Chapter 7 bankruptcy allows you to liquidate assets to pay off your debts, and there are protections in place to help you keep things like a much-needed vehicle or home in some cases.
A bankruptcy can ruin your credit for a period of time, and a Chapter 7 bankruptcy can affect you for up to 10 years. That doesn’t mean that getting relief from debt will take that long or that you won’t be able to build your credit back up sooner. In exchange for this 10-year impact on your credit, you can have most debts completely discharged.
Many people think of Chapter 7 bankruptcy as a do-over button that makes them start from scratch, but that isn’t true. In fact, there are many items that are exempt from sale that you can keep, so you don’t have to start from nothing. The point of bankruptcy is not to put you into a position where you can’t afford to live and have to start all over, but it will eliminate many luxury assets from your possession. Even in cases of credit cards, you can begin to get new lines of credit within just a few years.
Your attorney can best explain how you’ll be affected, since everyone is in a different position. Our website has more information on bankruptcies and what to expect. You may find that they are exactly what you’ve been looking for.