If you've recently suffered from an illness or injury that has left you temporarily unable to work full-time, you may be investigating your options. From employer-sponsored short-term and long-term disability insurance to workers compensation to Social Security Disability (SSD), the number of disability programs potentially available can seem overwhelming. In addition, if you feel you're able to work at least part-time during your recuperation, you may wonder whether you're even eligible for any disability assistance.
A bankruptcy definitely puts a black mark on your financial history, but it's not an insurmountable problem. As tempting as it can be to burn all your credit cards, swear off loans, and attempt to live a completely credit-free life, it's not necessary to do so, and it's not the most financially sound plan. Even if you never wanted to buy a home or finance a car again, you may need to pass a background check just to rent an apartment, or even to get some jobs.
Bankruptcy is a method in which consumers or businesses can reduce or eliminate all or part of their debts. The federal bankruptcy court protects the debtor from the creditor during the process of the bankruptcy and following the proceedings as well. Your first step in deciding to file bankruptcy is determining what type of bankruptcy is best for your financial situation.
Chapter 7 Bankruptcy
Chapter 7 bankruptcies fall under the liquidation category.