There might come a time in your life when you have to consider filing for Chapter 7 bankruptcy. You’ve probably heard some small details about chapter 7 bankruptcy, but you might not know the truth about its qualifications and processes. This is some of the basic information about the process so that you’ll know if you can qualify for it or not.
Qualifying for Chapter 7 bankruptcy will require you to meet financial standards. What that means is that you have to have low or moderate income to qualify. A high income will cause you to be ineligible for Chapter 7, and you might have to file for Chapter 13 instead. You’ll have to create a repayment plan and pay a portion of your debt if you file for Chapter 13. Your attorney will look at your financial profile and conduct a test called the means test. The means test will establish how much money you have to repay your debt. The means test will look at your income as compared to other people in the nation. You may be eligible for representation by one of our attorneys for bankruptcy if you pass the means test.
Amount of Debt
To qualify for bankruptcy, you’ll have to have a significant amount of debt. While there is no set minimum amount of debt that you must have, the process may not be worth it if you owe less than $10,000. In that case, you might be better off with a debt management plan or an alternative debt recovery system. Your attorney will discuss your options with you so that you know where you stand in the process. He or she will look at your monthly income, your bills, and the debt that you currently owe.
Chapter 7 bankruptcy is designed for low to moderate-income applicants who have a property that they would like to protect. It might be right for you if you have a home, car, and bank accounts that you want to protect, and your debt is overwhelming. In some situations, the courts will allow you to keep your home and your car even though you file for bankruptcy. In other cases, you may have to sell your property to repay the lenders. An experienced attorney at our firm will help you preserve your property so that you can rebuild your life.
How to Get Help With Bankruptcy
The attorneys of FIDE Law are here to help you find a way forward and new start, by looking for a way out. We will take a look at your complete financial life and discuss all your options. Take the first step toward financial freedom by reaching out to our office today.