Bankruptcy is certainly not something most people like to consider, but the truth is, in some cases, it really is the only solution. Bankruptcy can happen for many reasons. In fact, according to Legal Jobs, 62% of personal bankruptcies in the United States were due to medical expenses. Regardless of the factors that are playing into your debt or your consideration of bankruptcy, it’s important to know the different options that are available to you. This quick guide will explore the Chapter 7 Bankruptcy option.

What Is Chapter 7 Bankruptcy?

Chapter 7 is a bankruptcy option that will clear away debt quickly. This is also sometimes referred to as a liquidation bankruptcy as most individuals will be obliged to sell non-exempt possessions or assets. You will talk with a bankruptcy professional to determine what qualifies as exempt or non-exempt. Bankruptcy law offices can help you understand this better.

How Does Chapter 7 Work?

This option is often recommended for people who are struggling to pay bills, keep up with debt payments, and meet essential needs each month. This could be a good option if you face huge financial setbacks and you need a reset. Certain debts may be discharged, meaning you will never need to pay anyone. If you have a no-asset case, you will also be able to keep all of your belongings. A no-asset case means that everything you own is essential to your everyday life and would be exempt from liquidation.

This type of bankruptcy is completed through the court system with the assistance of bankruptcy law offices. If it goes through, the court will halt all collection attempts on you. This can include home foreclosure, wage garnishment, repossession, and eviction. Your assets will be evaluated to determine if anything needs to be sold to go toward the debts. If no assets can be identified, and all of your possessions are necessary to everyday life, nothing will be sold. The court will then discharge the debts.

What Are the Long-Term Effects of Bankruptcy?

A bankruptcy will affect your credit for a while. However, you can recover from this. This is a relatively small price to pay for the relief of getting out from under the burden of the debts you can’t pay. After your bankruptcy is finalized, you can start efforts to build your credit back up. Over time, the bankruptcy will be taken off your credit report as well.

If you are looking for reliable bankruptcy law offices, please contact Law Offices Of Rex J Roldan PC today. Our experienced team is here to help you find relief from your debt and start a new financial journey.