Chapter 7 bankruptcy

A Chapter 7 bankruptcy is where all of the assets you have that are not exempt from being taken are sold. The money generated from these sales is then distributed to the people you owe money to. After this has taken place, the remaining debt you have is wiped away apart from some nondischargable debts.

To say that this can be an unpleasant process is a massive understatement. People often lose their homes in a Chapter 7 bankruptcy which can lead to an uncertain financial future. People with families usually do everything they can to keep hold of their property, so Chaptter 7 bankruptcies are more often than not overlooked.

Fortunately, there are a number of alternatives you can consider like an IVA or Individual Voluntary Arrangement. The big plus, for families in particular is that you won't lose your home or other valuable assets. 

An IVA is where you reach an agreement with creditors to make set monthly payments to them for a long period of time and in return they chop off a massive amount of your debt. This is a nice alternative if you can afford to make these repayments. Unfortunately many people with severe debt have no money at all coming in meaning a Chapter 7 bankruptcy is much more likely.

On the plus side, bankruptcy in the UK is not as severe as it once was. You are often discharged from your bankrupt status much sooner than you once were. This means you're not only free from debt but can go back to earning a good salary and not be held back by financial red tape.

If you're considering a Chapter 7 bankruptcy then you have the most serious debt problems of all which require the most amount of thought. Review every detail of your finances and do your research on what options you have.

You're more than likely going to need professional help whatever you come up with so make sure you do this sooner rather than later. You might well be able to avoid a Chapter 7 bankruptcy by acting quickly.

We have plenty of resources and information on bankruptcy proceedings and can also divert you to useful services that can be of significant benefit if you don't know where to go. 

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