Find a Way Out of Crippling Debt

Any mention of the word “bankruptcy” and people shy away from talking about it. While bankruptcy can be seen as a negative thing, it can prove to be an incredible solution for those searching for debt relief. Chapter 7 bankruptcy is one of two options for consumers – the other being Chapter 13. Chapter 7 might be the perfect plan for you if you are looking for a fresh start and are tired of drowning in debt.

Chapter 7 is a liquidation bankruptcy. In a Chapter 7 bankruptcy your unsecured debts will be eliminated giving you a fresh start. Unsecured debt is debt that is not secured by an asset, such as credit cards, medical debt and personal loans. A secured debt is debt which is attached to an asset, such as car or home. In a Chapter 7, you are allowed to reaffirm debt if you choose to keep the property. The purpose of the Chapter 7 bankruptcy is to allow you to come out of the bankruptcy eliminating debt that is keeping you from prospering. This might be the right route for you, but it’s important to receive counsel from an experienced bankruptcy lawyer for your situation.