Oh, the shame. Imagine what people will say when they find out you are bankrupt. There is a stigma attached to bankruptcy, but there shouldn’t be. Read the news, millions of people like you are losing their jobs, all across the world. Big-name companies are on their knees.
The difference between you and the big companies is that the government always seems willing to bail them out, using the taxes you and everyone else pay. Remember how the government bailed the banks out in the last recession? Did you see them doing that for people like you?
The world is not going to work if everyone files for bankruptcy continually, but you deserve a chance to start with a clean slate. Filing for Chapter 7 bankruptcy may be the answer.
What does a Chapter 7 bankruptcy do, and what does it not do?
- A Chapter 7 bankruptcy can clear your unsecured debts such as credit card debt and medical bills.
- Chapter 7 does not clear all your debts. If you have outstanding child support payments, student loans, traffic tickets or unpaid taxes, you will still have to pay these.
Are there any disadvantages to a Chapter 7 bankruptcy?
If it were too easy to file for bankruptcy, everyone would do it all the time. Your credit rating will crash. You will have to learn to live without credit cards and you may not be able to get a mortgage again. You could also lose your property.
They could take my property?
Property is where things get tricky. There are federal and state rules and exemptions to take into account. Most people get to keep their homes, but you need to study the rules carefully.
Chapter 7 bankruptcy can be the fresh start you need, but before you do anything hasty, consult an attorney to ensure it is the correct option for you.