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Understanding What Bankruptcy Really Means


Wiping The Slate Clean: A Closer Look At Discharging Your Debt Through Bankruptcy

Has your personal debt become so overwhelming that you feel there is no way you will ever be able to pay it off while still meeting your current financial obligations? If so, you should know that there may still be a light at the end of your financial tunnel which allows you to eliminate past debt and focus on establishing financial stability in the future. This is because, for many people, it is possible to wipe the slate clean and get the fresh start they need by discharging their debts as part of a Chapter 7 personal bankruptcy case. Below, you will learn more about this legal process and how a bankruptcy attorney may be able to help you start the process of establishing a brighter financial future.

Eliminating Debt

Many types of personal debt can be completely eliminated as part of a Chapter 7 bankruptcy claim. This is accomplished through a legal process typically referred to as the discharge of debts. What this means for you is that if the court agrees to discharge your debts as part of your bankruptcy settlement, you will no longer owe these debts and they will be removed from your financial record. However, it is important to note that not every debt can be discharged by the court. For instance, recently acquired tax debts, secured debts, and student loans are not typically eligible for discharge. Consulting with a bankruptcy attorney will allow you to determine which of your debts are eligible for discharge and which obligations you will still be required to pay. 

Protecting Personal Property

One of the reasons that many people avoid using bankruptcy as a way to escape an overwhelming amount of debt is because they are afraid they will be required to surrender all of their personal property as part of this property. However, the truth is that most personal property can be protected when filing for Chapter 7 bankruptcy. Again, there are exceptions to this rule. For example, you cannot discharge your current auto loan and expect to keep the vehicle that secured that loan. 

Getting The Process Started

The court requires that all Chapter 7 bankruptcy applications are filed by a qualified bankruptcy attorney. Therefore, in order to start the process towards a brighter financial tomorrow, you will need to begin by contacting a qualified attorney in your area today. In most cases, you will find that these attorneys are willing to meet with you for a consultation at little to no cost. 

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Understanding What Bankruptcy Really Means

When you begin making strides towards a healthier, more financially sound future, there are a lot of things that you can do to simplify the process for yourself. While paying down debt and working towards a simpler lifestyle can make a big difference, sometimes a bankruptcy is required to make things better. Bankruptcy will essentially clear the slate for you and your family, making it possible to move forward without worrying about heavy bills hanging over your head. On this helpful website, check out great tips and tricks that could make it possible to prevent problems in the long run, so that you can make things better.

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