There comes a time in many people’s lives when they realize that their debt burden is just too much for them to bear, and there is no hope of getting out of debt. It does not matter how it happened. What does matter is what you do going forward. You may consider Chapter 7 bankruptcy as the right financial move to make.
Chapter 7 bankruptcy is a liquidation of some of your assets. Many of your assets (such as your home and retirement accounts in many cases) are protected from this liquidation. At the same time, a large number of your debts will be completely erased. This is the fresh start that you hear about associated with bankruptcy. In exchange for some of your liquid assets, you get a clean slate, free of the debt that has bogged you down. If your debt is crushing credit card bills that you cannot make a dent in or unavoidable medical bills, they can both be wiped out.
Chapter 7 bankruptcy is not for everyone. There is a means test that restricts this type of relief to people who earn below a certain amount. Otherwise, you would need to rely on a Chapter 13 restructuring. In addition, there would be a long-term hit to your credit. However, there are a number of pros that make this an option that is worth considering. An experienced bankruptcy attorney could explain Chapter 7 bankruptcy and help you determine if it is right for you.
The Harnage Law Firm counsels households just like yours about how the bankruptcy laws can work for them. Call us today at 321.549.7886 or contact us online to discuss your situation and learn your options.