Dealing with overwhelming debt can often feel like you are drowning and don’t know which way the surface is. Chapter 7 bankruptcy is a way out; a rescue boat. While it may seem like the proper thing to do is to politely refuse rescue and swim to shore ourselves, sometimes the best option is the one that will get you out of the water the quickest.
To continue with the rescue boat analogy, in order to get pulled aboard you will need to let go of the weights you are holding on to. Your assets will be liquidated to cover your debts. But, once you are on board, you no longer have to worry about past debts pulling you back down into the water. You get a fresh financial start.
Only certain people qualify for chapter 7 bankruptcy, those who truly have no other way to be rescued. You must have made less than the state median income, which for Pennsylvania is about $57,000 for a family of two. Otherwise, you must apply for chapter 13 bankruptcy, which is a way to restructure your debt, not eliminate it.
Once the bankruptcy process is complete, you can walk away from the old debt-filled life with a sense of relief and start anew. For most of your debts, you do not have to pay back what was not covered by the liquidation of assets. There are some exceptions, which an experienced lawyer may be able to explain to you in-depth, as this post is not meant as a