A lot of people have a negative image of bankruptcy. They think that it will leave them without debt, but also without a basic level of resources to get by. They’re also worried that bankruptcy will ruin their long-term financial livelihood, and that the stigma of bankruptcy will live with them forever. If you’re one of these people, then we hope this blog will set the record straight and change your mind.
What Chapter 7 bankruptcy can do for you?
This week, lets step back and look at the big picture. If you’re facing overwhelming debt, then you probably want to rid yourself of it. Chapter 7 bankruptcy may be able to do just that. This type of personal bankruptcy requires you to sell off many assets to repay creditors, but then many outstanding debts are discharged at that point. This frees you up for the fresh financial start you deserve.
What about my finances post-bankruptcy?
Chapter 7 bankruptcy isn’t going to leave you out on the street with nothing, as many people believe. This is because there are a number of bankruptcy exemptions that allow you to keep certain assets and up to a certain value point in other assets. This means you might be able to keep your clothing, furniture, books, retirement accounts, and even your vehicle, depending on the value of these items. You might even be able to reaffirm an outstanding debt so that, although it won’t be discharged in bankruptcy, you can keep the asset that is attached to that debt.
Know how to navigate the process to your benefit
Bankruptcy can provide you with the very real debt relief you need. Don’t let its negative image turn you away from it. Instead, learn as much as you can about the law and the process so that you can use it to your advantage. Attorneys like ours are here to help.