We’ve found that there are an amazing number of people out there who are suffering under debt they know they’ll never be able to repay, yet they never truly consider filing for bankruptcy as a way out of their situation. If you’re one of those people, it’s time to start thinking about bankruptcy, particularly Chapter 7 if you are in way over your head. Let’s run through some of the basics together!
Chapter 7 Bankruptcy
Contrary to what you may have heard, bankruptcy is not all bad. In fact, federal and state statutes make it relatively painless. One of the most common misconceptions about bankruptcy (especially Chapter 7) is that the debtor loses his shirt. Not true. Simply put, you will retain just about all of your essential assets. We hate to say exactly what you’ll keep, because everyone’s situation is different.
However, your home and vehicles are protected up to a certain value. You’ll keep your household goods. You’ll also still have your retirement accounts! And, you could even end up keeping heirlooms and other items that you might be surprised to hang onto.
Don’t let fear hold you back from experiencing the powerful catharsis of filing for Chapter 7 bankruptcy! Also, don’t let people’s uninformed opinions keep you suffering under your debt.