Are your credit card debts out of control? Are you worried about making ends meet? Are collection agencies calling you nonstop? If so, bankruptcy may be an option for you. Chapter 7 bankruptcy allows individuals to clear their debts and rebuild their lives stress free.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a way to clear an individual, a partnership, a business, or a corporation's unsecured debts. When you file for Chapter 7 bankruptcy, a court will order an automatic freeze for all collections on your debts. The harassment will stop, but the court will also legally own your possessions, such as a home. You will be appointed a bankruptcy trustee to help review your assets and ensure your bankruptcy claim is filed successfully. You will need to sell off or turn over your assets to creditors. Some states have exemptions to what can be sold and what you can keep. This is why it's important to always work with a legal professional to ensure you know what you can keep, and what you might lose by filing for bankruptcy.
How Do I Qualify For Chapter 7 Bankruptcy?
Not everyone can qualify for chapter 7 bankruptcy. You need to have low income to be eligible for this type of bankruptcy. You have to prove that your income has been below the average income for a family of your size over the past six months, or you must pass a means test to be eligible. Most courts will also require you to go through a credit counseling course a few months before filing for chapter 7 bankruptcy as well. You also cannot have filed for chapter 7 bankruptcy within the past decade.
Are Any Debts Excluded From Chapter 7 Bankruptcy?
You cannot discharge every debt you have if you file for chapter 7 bankruptcy, even if the filing is successful. Some debts that will remain include child support, alimony, and student loans. It's also possible a creditor can object to your bankruptcy claim and argue that other debts cannot be discharged. This is uncommon, but it might occur if you recently opened a new credit card to buy luxury goods.
Should I Work With A Chapter 7 Bankruptcy Attorney?
If you are filing for Chapter 7 Bankruptcy, you should consider speaking with a legal professional. An attorney can help weigh out your options for filing for chapter 7, determine what assets and exemptions you're eligible for, prepare all necessary paperwork, and defend your case in court. Fill out our Free Evaluation above to connect with a bankruptcy attorney who handles cases in your area.