When you are drowning in insurmountable debt, a chapter 7 bankruptcy can provide a way out. It can give you a much-needed fresh start and eliminate crippling financial problems.
Unfortunately, far too many people have developed incorrect assumptions about filing for bankruptcy. It is important to learn the facts before you dismiss chapter 7 as a solution for your overwhelming debt.
You may not lose everything
One of the most pervasive misconceptions about bankruptcy is losing all you hold dear. In reality, there are many exemptions available that may allow you to keep your car and some of your personal belongings, perhaps even your home.
In Tennessee, the wild card exemption can protect personal property worth up to $10,000.
You may file a chapter 7 more than once
Some hesitate to initiate a chapter 7 bankruptcy because they fear they may need it more at some point in the future. Although there are time limits between each filing, you can seek consumer bankruptcy protection as many times as necessary.
Your credit score can eventually recover
Credit is necessary to the modern way of life. You need it to rent a car and sometimes even a home. Contrary to common belief, your score can recover with responsible financial habits going forward. Filing for bankruptcy is a legal and responsible way to start fresh – your score will one day reflect your good habits.
You need not cope with your chapter 7 bankruptcy alone. Investing in sound legal representation can make a difference in the outcome of your situation.