Debt can unfavorably impact your life to the point that your well-being can suffer immensely. It can feel as though there is no way out of a financial mess, but if you are a consumer losing sleep over your debt, bankruptcy may be a beneficial endeavor for you. Specifically, if your debts amount to more than half of your yearly income or if it would take you more than five years to repay creditors using extreme measures, Chapter 7 bankruptcy can be an important step toward resolving credit issues and moving forward.
Under Chapter 7 bankruptcy, you may be required to liquidate assets, but this is not always the case. This type of bankruptcy is the most straightforward of all, but it is not the easy way out of money problems. While most unsecured debts will be forgiven, it will leave a negative mark on your credit in which you are required to repair through hard work and timely payments in the future. Although there is negative stigma around the term, bankruptcy can be a way to rebuild your fiscal health and future. Take the first step by contacting a bankruptcy attorney to discuss your situation and what options are available to you.
To learn more about when to file for Chapter 7 bankruptcy, contact Attorney Patrick T. Smith today.