What is Chapter 7 Bankruptcy and Who Qualifies for It?
If the thought of filing for bankruptcy has crossed your mind, you're likely not alone. Every year, thousands of Americans file for Chapter 7 bankruptcy protection to get a fresh start from financial difficulties. While bankruptcy is a great option to resolve debt, you’ll need to have all the right information to help you decide if Chapter 7 is right for your financial situation. Here’s what you need to know:
Benefits of Chapter 7
Chapter 7 has many benefits that you can take advantage of — and typically it can be completed within a few short months. Here’s what Chapter 7 bankruptcy can do for you:
- End harassing phone calls from debt collectors
- In most cases, you can keep your house and car
- Most household possessions can be protected
- Eliminate unsecured debt
- Get a fresh start in a matter of a few months
What are the qualifications of Chapter 7?
Chapter 7 has an income limit requirement. Even if you earn more than the median salary allowed in your state, you may still qualify for Chapter 7 through a means test. This process calculates whether or not you will have enough funds left over pay off creditors at the end of the month. If you have very little money left, you will likely qualify for Chapter 7. Should you fail to meet the requirements of the means test, Chapter 13 bankruptcy may be the option for you. An experienced bankruptcy attorney can advise you which options are best for your particular financial situation.
First Steps in Getting Debt-Free
Taking on your own bankruptcy case can be an arduous and stressful task if you are not well-versed in bankruptcy law. The first step is to contact an experienced bankruptcy attorney. Having an attorney on your side gives you the opportunity to get all the facts and questions answered so you can make an informed decision.
Here are some things that may be required to bring to your appointment for your attorney to review:
- Most recent bank statements
- Most recent bills from your creditors
- Car payments (leased or purchased)
- Medical bills
- Any judgments/ pending litigations
- Divorce decree or other documents showing child support/maintenance.
If your finances are in disarray, you may need to contact a bankruptcy attorney for advice. The attorneys at Wadhwani & Shanfield will help you understand the process. To learn more about bankruptcy and other ways we can help you achieve debt relief contact us today to build your custom debt relief solution.