When you realized that you weren’t going to be able to catch up on your bills, it upset you a lot. You felt like you were a failure and that you would always be struggling with debt.
You should know that most people go through a situation like yours at one time or another. Whether it’s because of a medical emergency, a lost job or another problem, financial issues can be a result. There is no shame in needing help, and bankruptcy is one option that you can pursue.
Chapter 7 bankruptcy is a type of bankruptcy that allows you to eliminate the majority of unsecured debts, like credit card debts or medical bills. In exchange, you may need to give up (or liquidate) some of your assets. You won’t always have to give up items in your possession, however, depending on the exemptions you can use and what you own.
By having unsecured debts discharged, you should have a greater amount of money available to pay for secured debts, like your mortgage or student loans. The idea is that by eliminating those unsecured debts, you’ll have what you need to get back on track.
To qualify for Chapter 7 bankruptcy, you will need to meet strict debt and income requirements. If you don’t qualify, don’t think you’re out of luck, though. There are many kinds of bankruptcy that your attorney can talk to you about so that you can learn more about which one might be right for you.
Bankruptcy shouldn’t always be your first choice when you run into financial trouble, but it may be the best one for your situation. Our website has more on Chapter 7 bankruptcy and how it may help you.