You've worked hard, and you've been with your employer for several years. You were shocked when your employer told you that they'd be shutting their doors. The business has always seemed busy, and it didn't make sense that the business would have to close.
Bankruptcy is usually discussed as if there is only a single option: Chapter 7 liquidation. If you've ever seen someone go through Chapter 7, you might be put off by the idea of needing it yourself. You don't always lose a lot in this form of bankruptcy, but there is a potential that you will have to give up some of your assets.
Bankruptcy is sometimes the right choice, especially when a person's income has no chance of catching up to their debts. Bankruptcy can help eliminate debt and get you back on your feet. In fact, it is relatively quick and painless once you start the process.
Chapter 7 bankruptcy, also called liquidation bankruptcy, is a kind of bankruptcy that allows you to get out of debt by eliminating your debts through legal action. To do this, you must be willing to give up certain items that are not exempt from liquidation. They are then sold, and the proceeds are used to repay creditors. Once the proceeds are used up, the remaining debts are forgiven.
Bankruptcy is an option that you have when you have so many debts that you cannot pay them back on time or with any certainty. Some people opt for bankruptcy to get a fresh start, while others turn to it with no other options.
If you realize Chapter 7 bankruptcy is the best way to improve your finances, it won't be long before you're learning more about the process and focusing on the next steps.
Chapter 13 bankruptcy, unlike Chapter 7, is not a liquidation bankruptcy. With this form of bankruptcy, you repay what you owe over a three-to-five-year timeframe.
As someone who has worked long and hard, it is difficult to keep going when you realize that nothing you have done has brought down the amount of debt you have. You work to pay your minimums, but living paycheck to paycheck isn't easy.
Bankruptcy is sometimes seen as a kind of "dirty word," but the reality is that bankruptcy has the potential to be very helpful for people who are struggling with their finances. Since the recession, many people have struggled to get their finances back on track.
As a student, one thing you've been looking into is the possibility of a personal bankruptcy. Why? Your loans are too high. With the repayment making up half or even more of your income, it's impossible to make payments as well as having a home and any kind of life.