3 Reasons To Consider Chapter 7 Bankruptcy

Posted on: 28 October 2017

By the time you consider filing personal bankruptcy, your finances are most likely in serious disrepair and you may be experiencing serious anxiety. Chapter 7 bankruptcy, while a serious decision, can give you a fresh start and some breathing room by eliminating many of your debts. Here are a few of the biggest reasons to look into filing Chapter 7 bankruptcy:

You Have More Debt Than You Can Pay

Maybe you went through a bad divorce or a period of unemployment that led to relying on credit cards or personal loans for a period of time. Even if you thought the amount of debt you took out was manageable, things can quickly spiral out of control thanks to fees and interest.

If your debt is much higher than you can reasonably pay back in the foreseeable future, you are struggling to make the minimum payments, and your debt is growing instead of getting smaller, bankruptcy may be your best option. When you file Chapter 7 bankruptcy, certain debts including credit card debt and medical bills, are completely eliminated by a court order. You then gain financial breathing room in order to begin rebuilding your savings.

Your Credit is Already Suffering

Many people delay filing bankruptcy because they are worried about the negative impact on their credit score. While bankruptcy does temporarily have an effect on your credit, your credit may already be suffering due to late or missed payments and having a bad debt-to-credit ratio. By filing bankruptcy, you can begin to rebuild your credit since you will no longer be burdened by excess debt. 

You Feel Anxious or Hopeless

There is no reason to continue staying awake at night worrying about bills you can't afford to pay while your debt continues to grow and grow. Filing bankruptcy can remove an immense weight from your shoulders and give you peace of mind. Once your unmanageable debt is eliminated through bankruptcy, you can regain control of your finances instead of continuing to feel hopeless and scared. You may even find it's easier to dedicate energy toward increasing your income and your savings once the unmanageable debt has gone away.

The first step when considering Chapter 7 bankruptcy is to schedule a consultation appointment with an experienced bankruptcy attorney. They will go over your unique situation and help you determine if Chapter 7 bankruptcy is a good solution to your financial worries.