Credit card debt is a burden that can silently grow without the debtor’s notice until it is too big to ignore. Medical debt can suddenly appear after an injury or illness and leave the patient with thousands of dollars of debt or more. When the minimum payments on your debt are eating all your income, how can you survive your debt?
Bankruptcy is an option that hundreds of thousands of people used to overcome their financial hardships last year. Despite these numbers, many more people do not even consider bankruptcy because they are afraid of it or worry about what others will think of them. Chapter 7 bankruptcy is nothing to be fearful of, and it has the potential to free you from financial ruin.
How Chapter 7 bankruptcy can help
A Chapter 7 bankruptcy offers applicants a quick, 3-month process, for resolving and discharging as much debt as possible. A discharge generally includes unsecured debt, which consists of medical bills, credit card balances, deficiency balances on repossessed or foreclosed property, and signature loans. There are also options to surrender secured property and wipe out any remaining balance on the loan. This process allows applicants to forget about never-ending debt and focus on their future.
Many will qualify for Chapter 7 relief; however, there are circumstances where it would not be the best option. If someone is behind on certain secured debt for property they want to keep or has substantial equity in property one wants to retain, a Chapter 7 liquidation may not be appropriate. A bankruptcy attorney will talk through all of the eligibility requirements and decide if liquidation or a Chapter 13 repayment plan might be the best choice. Although bankruptcy is usually considered one of the last resorts, it is usually not the worst-case scenario some might think.
Take control of your finances
If you or someone you know is struggling with extreme medical or credit card debt, Chapter 7 may help you overcome your hardship. Bankruptcy attorneys can help you review your situation and determine what course of action is right for you and your family’s future. Knowledge is powerful and learning these options is free. The sooner you review the possibilities, the more control you have.