There are always people who believe that bankruptcy means they’ve failed in life or that they’re bad with money, but the truth is that debts can be overwhelming even if you’ve always stayed on top of what you owe. Sudden medical bills, economic changes and other factors can make your once-stable financial situation a struggle rapidly.
Chapter 7 bankruptcy is one kind of bankruptcy you can consider if you want to start fresh. While this kind of bankruptcy is often represented as liquidating all your assets and forcing you to start from nothing, that’s not true. In fact, there are many exemptions for your assets that you can use, protecting things like your vehicle, home and other items.
Chapter 7 bankruptcy is a good choice for many because it discharges most debts. Any non-exempt property is sold or returned to creditors, and then all the remaining debt, once the bankruptcy plan goals are met, is discharged. You keep all future income from the time you start your Chapter 7 bankruptcy, and there are no limitations on how much debt you have to have before you can file or how much debt can be discharged when you do. There’s no repayment plan with Chapter 7 bankruptcy, either, making it a good choice for those without the funds to pay back their creditors over time.
Deciding to enter into bankruptcy does have its downsides, and it’s important that you know everything that could happen before you file. Our website has more information, so you can learn about how a bankruptcy may help you.