Bankruptcy Facts You Need To Know About

Bankruptcy Facts You Need To Know About

Chapter 7 Bankruptcy Lawyer

Filing for bankruptcy may not seem like a pleasant or easy experience. However, it is a financial tool that many people can use if they encounter serious financial hardship. It can be tempting to get caught up in the stress and judgment of it all, but ultimately, filing for bankruptcy can be what changes someone’s financial path for the better. Self-criticism aside, filing for bankruptcy can be a wise choice depending on the circumstances and how much debt the person has accumulated. Here are some facts to know about if you are considering filing for bankruptcy.

Not all your assets will be lost.

You may initially think that bankruptcy will result in you losing your car, house, or another asset. But there’s a chance you can keep your possessions. For instance, for most Chapter 7 bankruptcy cases, the debtor actually gives up no possessions at all. There are asset exemptions that are necessary for daily life. What is considered an asset exemption will vary by state law, so be sure to talk about exemptions you qualify for with our bankruptcy lawyer, similar to a team member from Therman Law Offices, LTD.

Not all debts will be eradicated.

Chapter 13 and Chapter 7 bankruptcy provide relief from numerous forms of debts, but there are some that won’t be discharged. Generally, bankruptcy cases do not allow you to eliminate debts that you are personally responsible for. For instance, student loans, child support payments, and recent taxes may not be discharged from your bankruptcy case. Your lawyer can help you understand which of your debts will be eradicated, and which will remain. 

Bankruptcy is not a personal failure.

Too many people have this idea that they are a failure or are inherently flawed if they need to file for bankruptcy. But the truth of the matter is, bankruptcy is there as a resource for a reason. There are so many financial expectations that are put on everyday people, that some of us will struggle at one point or another. More than half of bankruptcy filings in 2009 were because of medical bills, and the cost for medical deductibles has grown faster, yet wages have not risen in comparison. 

Bankruptcy does not ruin your future.

You can expect to have less access to credit, and are likely to pay higher interest rates, for up to ten years after your bankruptcy filing. A bankruptcy status will remain on your credit report for about a decade, and your credit score will take a temporary setback as well. But in the long run, as a chapter 7 bankruptcy lawyer can attest, bankruptcy allows people to shed much of their debts so they are more manageable, while working towards financial stability into the future. 

Regardless of your reason for needing to file for bankruptcy, it’s great that you are considering taking action at all. Too many people sit idle and don’t find solutions to their problems, which only exacerbates the issue overtime. If you are thinking about filing for bankruptcy, give yourself a pat on the back and know that you are trying to do your best to get yourself out of financial hardship.