There are many times when people say that they’re in dire financial straits but haven’t yet considered bankruptcy. Bankruptcy is like a bad word to most people, but the reality is that it’s a helpful legal option if you’re struggling with debt.
Bankruptcy doesn’t have to be scary. Here are some things you should know about it, so you can starting thinking about if it is right for your situation.
Are there better alternative than Chapter 7 bankruptcy?
Sometimes. It all depends on your situation. For example, if you haven’t yet missed any payments, then it might not make sense to hurt your credit with bankruptcy. Instead, you might want to look into alternatives like debt consolidation or negotiating directly with your creditors.
What if you earn too much to file for Chapter 7 bankruptcy?
If you earn too much to use Chapter 7 bankruptcy, you can still seek a Chapter 13 bankruptcy. Your attorney can look over your finances with you and determine if you can qualify for Chapter 7. If so, they can help you apply.
Do you lose everything in a Chapter 7 bankruptcy?
While a Chapter 7 bankruptcy is called a liquidation bankruptcy, it doesn’t actually mean you are going to have to liquidate all your assets. There are many exemptions that you can use to keep some or even all of your assets.
Chapter 7 bankruptcy can be a wonderful solution to difficult financial times in your life. If you’d like to learn more, there is more information about Chapter 7 bankruptcy on our website.