Chapter 7 bankruptcy has the potential to help you in a time of crisis. If you don't see a way out of dire financial straights, then Chapter 7 may be the best solution for you.
One of the reasons people go into bankruptcy is medical debt. Medical debts are usually unsecured debts, which means that they can be dismissed upon request in a court. There are ways to negotiate down bills, but when they could total in the thousands, it's no wonder so many people turn to bankruptcy for assistance.
Doesn't bankruptcy mean you're bad with money?
Not at all. In fact, while there are some who have simply made financial errors, others are in difficult positions because of medical debt, student loan debts and other financial losses that make it hard for them to keep their heads above water, even when they work full-time jobs.
Will you lose everything in Chapter 7 bankruptcy?
The myth is that you'll lose everything if you opt into a Chapter 7 bankruptcy, but that's not true. There are some assets that will be exempt, meaning that you can keep them even if you have to turn over other assets to your bankruptcy trustee. For example, a primary vehicle might be exempt, just as your work uniform and basic necessities would be.
Bankruptcy is there to help you get out of debt, not to put you in a position where you have no option but to take on more debts. It can be a hard decision, but it's one that could help your financial situation.