When it feels like the weight of your debts and other payment obligations are keeping you from making any progress in life, it might just feel like you need a fresh start. There is no shame in wishing for a new beginning, so it is absolutely worth considering bankruptcy as a debt relief option.

Chapter 7 bankruptcy is a common avenue for individual filers that entails liquidating certain assets as part of the debt-clearing process. By learning more about how Chapter 7 bankruptcy can give you a fresh start, as well as how to hit the ground running afterward, you can give yourself the best chance at a successful financial future.

Bankruptcy provides a chance to clear away debts

When you file for bankruptcy, an automatic stay goes into place that prohibits most or all of your creditors from pursuing payment from you during the bankruptcy period. In the case of Chapter 7 bankruptcy, you will then liquidate your non-exempt assets under the direction of a trustee to fund the repayment of your most pressing debts. The court will discharge any remaining unsecured debts at the end of the bankruptcy period.

Bankruptcy requires planning for a new beginning

Emerging from bankruptcy is not without its challenges, but this period can be a refreshing new start for you with the right planning. Your credit score will take a noticeable hit, affecting your ability to borrow money or take out a mortgage. You can slowly rebuild your creditworthiness by making prompt payments or by using a secured credit card.

Undergoing Chapter 7 bankruptcy gives you a period of time during which you can take steps to repay crucial debts without creditors breathing down your neck. At the end of the bankruptcy period, you will have a chance to start anew.