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How does Chapter 7 bankruptcy work?

| Feb 5, 2021 | Uncategorized

A lot of people are just one unexpected problem away from financial ruin. It could be the sudden loss of a job, the onset of an unexpected medical condition, or even a divorce. Regardless of why you find yourself on hard times, you’re probably looking for a way out. While a lot of people fight with everything they have to try to claw their way out of debt, the unfortunate reality is that these efforts oftentimes do nothing more than lead to an ongoing battle against creditors without every really reclaiming financial stability.

You deserve better than that, which is why if you’re facing financial challenges then you might want to consider personal bankruptcy.

The basics of Chapter 7 bankruptcy

One of the most common forms of personal bankruptcy is Chapter 7 bankruptcy. This debt relief option requires you to sell (sometimes called liquidate) your assets in order to repay your creditors as fully as possible. Then, once that process is complete, most remaining debts will be written off.

Selling off your assets might be a scary thought, but bankruptcy exemptions allow you to keep certain items of personal property as well as a certain amount of equity that you’ve built up in your home and your vehicle. In other words, a Chapter 7 bankruptcy can provide you with very real financial relief while still ensuring that you have the financial means that you need to get by post-bankruptcy.

Know your options to determine your best course of action

Bankruptcy, though it may not discharge all debts such as student loans, can be a great way to rid yourself of burdensome debt and reclaim your life. But the process isn’t for everyone. Those who do choose to pursue bankruptcy, though, need to know the law and how to navigate it to their advantage.

That’s why experienced law firms like ours stand ready to help clients learn about their options so that they can make the decisions that are best for their future. Then, once a decision is made on how to act, we zealously pursue it to ensure that their interests are as fully protected as possible. We hope then that they’ll be able to secure the brighter future that they deserve.