If you find yourself mired in debt and in need of a fresh start, then Chapter 7 Bankruptcy might just be right for you.
It is a process that may eliminate most kinds of unsecured debt, and is backed by United States federal bankruptcy law.
Unsecured debt includes such things as credit cards, personal loans, car accident judgments, medical bills, and deficiencies on repossessed vehicles.
With Chapter 7, the goal is for you to keep your car, your home, and your personal belongings, but to get rid of the debt.
However, your car and mortgage payments must be in current standing, and there needs to be no significant equity on your home.
Are your creditors are getting restless and threatening to garnish your pay? This serious action could divert most of your income right out of your bank account, leaving you with very little left.
You will be pleased to know that Chapter 7 Bankruptcy can stop this from happening.
If your drivers license has been suspended because of unpaid parking tickets, or because you didn't have liability insurance at the time of your automobile accident, a Chapter 7 Bankruptcy can result in it being reinstated.
Sometimes a loan company will over-finance a vehicle, making it impossible for the borrower to afford anything else.
In some cases people are actually forced into bankruptcy because of this.
A Chapter 7 redemption can force a creditor to accept a payoff on your car for only it's actual value.
Then you can have new financing arranged, which will lower your payment, and let you get on with your life.
If you are still worried about the ramifications of filing for Chapter 7 Bankruptcy and the affect it will have on your life afterward, then here are some points to consider.
First of all, the stigma associated with such things has virtually vanished, and most people who hear the word "bankruptcy" and shudder, really don't know anything about it.
Granted, Chapter 7 will remain on your credit report for up to 10 years, but you don't have to wait that long to get on with things.
You can begin to rebuild your credit almost immediately after Chapter 7.
Credit is your ability to borrow money.
If you doubtful, ask yourself whether you'd rather loan money to the person you are now, with loads of credit card debt, or the person you will be after your bankruptcy has been discharged.
As for your current mortgage lender and automobile finance companies, they are usually more than happy to continue on with your current monthly payments after a Chapter 7.
This is called reaffirming your debt.
These companies want to make money, not repossess your property.
If you do not presently have a car loan, or a mortgage, then shortly after your bankruptcy is discharged, you will be able to arrange for a vehicle.
Within two years, with a minimum down payment and evidence of income, you will be able to put an offer on a house.
It is the credit card companies that will get to you first, often within a few months.
This is another way to rebuild your credit, albeit a dangerous one.
You do not want history to repeat itself, you simply want to purchase prudently on credit, and pay your balance off every month.
Do some checking online.
Find out the details you need and then go for it.
Life can be very good after Chapter 7 Bankruptcy.