A fresh financial start is a dream some people have. They don't want to be stuck in the debt rut, but they can't really figure out how to get back in control. This can be a very scary place for anyone, and we understand that. When it comes to finding a way out of debt, some people might opt to turn to bankruptcy. While it can be a very effective tool for people who are struggling, it has to be used in the right way so you can protect your future.
Chapter 7 bankruptcy, which is also known as liquidation bankruptcy, is one of the options some filers may have. In this type of bankruptcy, your assets are sold off to satisfy the debts you have accumulated in a manner that allows those debts to be discharged. The issue with this type of bankruptcy is that some of the assets that might be liquidated are those that can you count on. You probably can't afford to lose your home, car or retirement accounts because you need to file for bankruptcy protection.