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  • Writer's pictureJon-Michael Murphy Attorney at Law

What is bankruptcy?

Updated: Mar 3, 2021

There are a lot of misconceptions about bankruptcy. Many people are concerned that they will lose their home, vehicles, or retirement if they file bankruptcy and that false. Bankruptcy allows you to keep any assets that are exempt while providing you a way to eliminate and/or repay your debts.

At its core bankruptcy is a legal process that provides individuals an avenue for taking back control of their financial well-being.

Bankruptcy allows individuals to either a.) eliminate all or a portion of their debts or b.) to set up repayment plan on all or a portion of their debts. The bankruptcy chapter you file determines how your debts are treated. The two most common chapters of bankruptcy filed by individuals are Chapter 7 and Chapter 13; each has its own qualifications that must be met in order to file. In a Chapter 7 you can seek to eliminate all of your dischargeable debts while in a Chapter 13 you are seeking to repay certain debts (past due mortgage payments or car note).

Don't let the misconceptions about bankruptcy prevent you from taking control of your finances. For many bankruptcy is not the end, but the beginning to a better financial future. Call us today for a free and confidential consultation, to learn more about bankruptcy and see if it is a fit for your situation


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