Chapter 7 bankruptcy is a type of bankruptcy filing that individuals use when they’re overwhelmed with debt and need helping getting out. Chapter 7 is the most popular type of bankruptcy filed today, meaning so many myths surround it that you may believe. At best, you’ve likely hear the myths a time or two in the past. Read below to learn more about the most common bankruptcy myths and contact a law firm athens ga to get started.
Myth: You Lose Everything
The purpose of bankruptcy is to prevent you from losing everything that you own. Filing for Chapter 7 may stop foreclosure and repossession and also helps you avoid the need to sell possessions to pay off debts. Don’t believe the myth that you’ll lose everything that you own when filing Chapter 7.
Myth: Filing Bankruptcy Means You’ve Failed
We all endure financial obstacles form time to time. They hit some of us harder than others. When you file bankruptcy, it shows that you are taking responsibility for your actions and attempting to make things right. It is a way to get back on the right financial path while there is still time.
Myth: Chapter 7 Relieves All Debts
While it’s true that Chapter 7 relieves most of the debts that you have some are not exempt from filing. This includes government related debts like child support and financial aid. Talk to a lawyer to learn more about the debts that are not extinguished from filing chapter 7.
Myth: You Should Never Filed for Bankruptcy
Some people say that bankruptcy is the worst thing in this world but the truth is, it is something that aims to help you get out of a financial crunch at a time when you may not have any other options. If you see no other way to get out of debt this is a solution that may provide the clear financial path that you need.