Underground Journal

Claiming Bankruptcy Through Chapter 7

For many people, claiming bankruptcy is the only way out of financial misery. These people have likely endured endless calls from creditors and constant reminders via mail that they are behind in their payments to creditors. Although many financial advisors shy away from recommending bankruptcy to their clients, it can sometimes be a last resort for people that have tried other options. Personal bankruptcy also carries with it a societal stigma; the public at large views it as an easy way out and feels that people who claim bankruptcy are somehow lazy or irresponsible. While some debtors certainly are to blame for their bad decisions, most are honest people that simply got into trouble financially, either through bad investments or through unfortunate life events.

When it comes to filing for protection, the most common form of personal bankruptcy is called Chapter 7. The reason why this type of protection has become so popular is that it allows the debtor to “erase” a large portion of their debt without ever having to repay it. Although Chapter 7 calls for repayment of debts through the liquidation of non-exempt assets, the truth is that many candidates don’t have many assets once they reach this point; therefore, it’s an attractive way for people to get out of debt without risking their personal belongings. Of course, Chapter 7 is not all fun and games. In fact, regardless of the type of bankruptcy you choose to file, your credit score will take an enormous hit, making it nearly impossible for you to borrow for up to 8 years after the claim has been filed.

For more information on whether a Chapter 7 bankruptcy claim is right for you, it’s a good idea to consult a qualified bankruptcy attorney. The right person can help you evaluate your current financial situation and can make solid recommendations to help you get your life back on track.

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