Bankruptcy is one of the most misunderstood legal processes. Many people view it as a last resort or even a sign of failure. In reality, bankruptcy is a legal tool designed to give individuals and businesses a second chance.
What Bankruptcy Really Means
Bankruptcy allows people to eliminate or restructure overwhelming debts under the protection of the federal court system. It is not about giving up—it’s about regaining control.
Types of Bankruptcy
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Chapter 7: Often called “liquidation,” Chapter 7 eliminates unsecured debts like credit cards and medical bills.
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Chapter 13: This involves creating a repayment plan to pay back some debts over time while keeping key assets.
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Chapter 11: Typically used by businesses, Chapter 11 allows companies to restructure debts while continuing operations.
Benefits of Bankruptcy
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Stops foreclosure and repossessions
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Ends wage garnishments and harassing creditor calls
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Provides a structured path to rebuild credit
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Offers peace of mind and financial breathing room
Life After Bankruptcy
Bankruptcy is not the end of your financial future—it’s a reset. Many individuals rebuild their credit within a few years and go on to purchase homes, start businesses, and achieve financial stability.
Final Thoughts:
If you are drowning in debt, bankruptcy may be the lifeline you need. At Terry Law Group LLC, we guide clients through the process with compassion and expertise, helping them achieve a fresh start.