When filing for Chapter 7 bankruptcy comes to mind, many people get cold feet. The truth is that bankruptcy is a legitimate debt relief option that can assist consumers with erasing all of their past debt. To find out whether or not this option can help, it is necessary to understand what is involved in the process of filing for Chapter 7 bankruptcy.
Who needs Chapter 7 Bankruptcy
When overwhelming debt has turned into chronic debt with creditors calling at all hours of the day and property in danger of foreclosure and repossession, Chapter 7 bankruptcy may be needed. Chapter 7 bankruptcy is meant to permanently eliminate most or all of the unsecured debt an individual has without the need for repayment. The process is also referred to as liquidation or “straight bankruptcy.”
What debts can be erased?
Some debt such as alimony, child support, or tax debt can not be wiped away with the filing of Chapter 7 bankruptcy. However there are many types of debt that can be eliminated effectively including medical bills, unsecured debt such as credit card debt, department store cards, payday loans, utility bills, and some personal loans. For consumers getting daily and even hourly calls from creditors, Chapter 7 bankruptcy can provide a great deal of relief.
How to know if you are eligible to file
When considering filing for Chapter 7 bankruptcy, it is important to know that not everyone will qualify. It will first be necessary to take a means test in order to determine whether your income meets the requirements for filing. If you are unable to meet the requirements because you make over the required amount, you will be able to file bankruptcy through Chapter 13. An attorney can provide the legal guidance needed to help determine whether or not you can qualify for filing for Chapter 7 bankruptcy.
What are the advantages of filing?
If your home is in danger of being foreclosed on and your car may be repossessed, it is time to contact an attorney about filing for Chapter 7 bankruptcy. You can put an end to wage garnishment and excessive creditor harassment. The majority of debt will be wiped away and you will be able to start afresh.
Talk to an attorney about whether or not Chapter 7 bankruptcy may be the right option for you.
To find out whether or not Chapter 7 bankruptcy is right for you, meet with an attorney from Smeloff & Associates. Schedule an appointment when you visit them online at website.
Click here to watch our Video.