If paying bills is very difficult for you, Chapter 7 bankruptcy may be an option for you.

If you are struggling to keep up with your bills and debt, Chapter 7 bankruptcy may be a option for you. But before you make the decision to file, it's important to understand what this type of bankruptcy entails.

Chapter 7 bankruptcy is also known as liquidation bankruptcy. This is because under Chapter 7, some of your assets may be sold in order to pay off your creditors. However, not all assets are subject to liquidation. Federal and state laws exempt certain types of property, such as your home and car.

While Chapter 7 bankruptcy can provide relief from financial hardship, it's important to understand that it will also have a negative impact on your credit score. In addition, filing for Chapter 7 may not be the best option if you have a lot of equity in your home or other assets that could be used to pay off creditors.

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