There are numerous big-ticket purchases you may have to make throughout your life. It may be a car, a house, a major vacation, jewelry, and real estate, among others. You may also need to pay for a wedding or invest in an income-generating venture.
Ideally, you may think that you can pay these off upon the time of purchase. However, unexpected things may occur that may render you unable to pay your debts. You may also incur costs that you did not anticipate. You can lose your job, spend on a medical emergency, or must reallot your budget towards something more urgent.
When faced with situations such as these, you may consider desperate measures, such as taking out loans, using credit cards or incurring other forms of debt just to complete payment. If the debt adds up, it may be too overwhelming, and you may feel like you will never be able to pay it off.
When the going gets tough you need to look at the entire picture calmly – and consider your options.
Filing for Chapter 7 bankruptcy
One of your options is to file for Chapter 7 bankruptcy, also known as the liquidation bankruptcy. Typically known as the quickest, simplest and most common type of bankruptcy, it allows qualified individuals a chance to discharge qualifying debt at the end of the process.
The process generally starts with filing a petition, along with schedules of your assets and debts and a current statement of your earnings and expenses. You would likely next submit a financial statement and copies of ongoing contracts, as well as current leases.
Starting a Chapter 7 bankruptcy proceeding may be complicated due to the requirements and the effort needed. Seeking counsel from an experienced attorney may help you navigate through the process.
