If you are struggling to make ends meet and have fallen behind on your bills, it can be a very difficult situation to be in. You may not be sure how you’re going to afford rent or might have been affected at work by a collector calling to connect with you.
In this situation, it’s a good idea to start looking into bankruptcy. A Chapter 7 bankruptcy may help you resolve the debts that you have in your name so that you can get a fresh financial start.
Will I lose everything in Chapter 7 bankruptcy?
Some people worry that they will lose everything in a Chapter 7 bankruptcy, but that isn’t the case. In most situations, people use exemptions to protect much of their property, such as their main vehicle, necessary clothing items and others.
Remember, exemptions are there to help you keep as much of your personal property as possible while still allowing you to eliminate your debts. During your bankruptcy, any items that are not exempted will be used to repay creditors. Then, the remaining debts can be discharged.
Chapter 7 bankruptcy can have you back on track within months
Another fact that many people don’t know is how fast a Chapter 7 bankruptcy can work. Within months, you could have your finances back on track and be in a much better position. Most Chapter 7 bankruptcies take between four and six months to resolve.
Once you file, you’ll also see immediate support for your situation. Right away, an automatic stay will go into place to stop harassing calls and collections activities. If your house is in foreclosure, that foreclosure will also be paused. All of this gives you time to focus your energy on taking care of your debts so that you can get back into a position where you can afford to live and work more comfortably.
If you believe that a Chapter 7 bankruptcy may be right for you, you may want to look more into your legal options and requirements. This is a good choice for debt relief if other methods of relief have not worked.