Many people resist filing for bankruptcy because they’re concerned about the stigma that’s still attached to it, not to mention how it will impact their credit rating and their ability to obtain loans. However, one attorney who has written about her past personal and financial struggles says that her Chapter 7 bankruptcy made her “much more knowledgeable about money and business.”
Generally people opt for bankruptcy because their financial situation gives them no other choice. While it’s not pleasant in the short term, Chapter 7 gives you a fresh start by wiping out much of your unsecured personal or small business debt. Generally, contrary to popular belief, people are able to stay in their homes and keep their cars amid Chapter 7.
As the attorney notes, filing for bankruptcy lets you “stop digging a deeper hole for yourself…so that you can start to look up and move forward; time will pass and you can start to rebuild.”
Eventually, people who go through Chapter 7 are able to start getting short lines of credit and eventually car loans and even mortgages if they handle their finances well.
People who own small businesses who find it necessary to file for bankruptcy often end up filing for personal bankruptcy as well because their business and personal debts are intertwined. Small business owners can help protect their personal assets from a business bankruptcy by setting it up as a corporation or limited liability corporation.
If you’re drowning in personal and/or business debt, it’s essential to seek experienced legal guidance. New York bankruptcy attorneys can help you minimize the damage and get a fresh start.
Source: Ebony, “The Bright Sides to Filing for Chapter 7 Bankruptcy,” Kara L. Stevens, Jan. 04, 2017