Straight bankruptcy is always chapter 7. Chapter 7 wipes out most unsecured loans, debts without collateral in exchange for giving up all of your property, except the property you own that is exempt, protected from creditors. If it is exempt, it is protected from creditors. Many people file chapter 7 bankruptcy and are able to keep everything they own. If you have more, you may have to give that to the court to sell, or liquidate, but there are sometimes ways to keep nonexempt property too. What is exempt in Bankruptcy varies from state to state so you have to speak to a bankruptcy expert in your area to know what property would be protected if you file for Chapter 7 bankruptcy. This also will help you know how to best protect yourself financially.
Now that you’re facing having to file personal bankruptcy you may be tempted to bury your head in the sand, but you need to take action. Start saving immediately and make a list of all the changes you need to make. Cut up your credit cards and sell whatever you can. You may need to sell your car or your house, neither of which is going to be easy. Look for our reputable online Do it yourself bankruptcy service that will help you with the whole process. This will save you thousands of dollars over hiring a bankruptcy attorney. Unfortunately, nothing is going to change overnight, after all it probably took some time to get to this point and will take some time to get out of it. Life always teaches us lessons and this is a big one. Learn from your mistakes and do not repeat them. If you got into debt from gambling or some other type of addiction, seek professional help immediately and deal with the issues that brought you to this point. If you get out of personal bankruptcy and repeat the same behavior, you will just continue the cycle.
