Individuals who are in debt and who need to file for bankruptcy can opt for Chapter 7 bankruptcy. It is the preferred application for bankruptcy because it not only works fast but has exemptions that allow you to keep your basic property, like your home and your car and household items.
There are people for whom Chapter 7 bankruptcy will work quickly to free them from debt. If you have huge medical bills, this kind of bankruptcy will help pay it and keep your basic property. If you have a lot of credit card debt, you should also apply for this kind of bankruptcy.
If you have a lot of bill collectors on your back, they may become aggressive over time. Chapter 7 bankruptcy forces them to cease communicating with you; they can only communicate with the court.
If you find yourself looking at bankruptcy and do not have a lot of property, then this kind of bankruptcy filing has advantage for you: it has provisions to help you keep the few personal items that you need most, like your home and your car. Also, if you already have bad credit, you may want to start over by filing for Chapter 7 bankruptcy; since your credit rating is already poor, you will not be adding much damage. The filing will appear in your credit report for 10 years, but if you are working hard to fix your finances, lenders may make exemptions for you.
It’s important to keep in mind that bankruptcy is a way for you to start afresh and not something to get depressed about or be ashamed of.
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