If a significant portion of the debt that has you considering bankruptcy is student loan debt, you're not alone. Almost a third of people who file for bankruptcy have student loan debt. On average, it comprises almost half of their total debt. Those figures are from a study by LendEDU. That site provides tools and information to help people compare and learn about financial products.
Are you worried about losing assets in bankruptcy?
For a long time, you may have tried to ignore your money issues or thought that you would be able to handle them on your own. Each time you missed a payment or incurred another fee, you may have told yourself that you would make up for it next month. Unfortunately, that vicious cycle has only continued, and you are feeling overwhelmed by your debt.
Expenses that can throw a wrench in your budget
You were living within your means. You were able to pay your bills every month, buy groceries and gas and keep up with the minimum payments due on your credit cards. However, you didn't have much left over at the end of the month, so you never got around to opening a savings account or starting an emergency fund.
What happens when debt is discharged in Chapter 7?
If you're considering Chapter 7 bankruptcy, one of the terms you'll see a lot as you learn about the process is "discharge." That's a big step in a bankruptcy case. It usually happens approximately four months from the bankruptcy filing.
Chapter 7 bankruptcy for businesses
Chapter 7 is traditionally associated with personal bankruptcy filings. However, in some cases, businesses can file for Chapter 7. It depends on how the business is structured.
