The road leading up to bankruptcy is hard. It is a time of emotional turmoil and distress, so understandably making decisions during this time is difficult. If you are considering filing Chapter 7 bankruptcy, here are a few things that will help make your decision easier.
Chapter 7 Bankruptcy is known as "straight" bankruptcy. This means that all assets that aren't exempt can be sold by the trustee to pay off creditors. Exempt property may include automobiles, work-related tools, and basic household furnishings. Most unsecured debt can be discharged or wiped out. Debts can be secured, which means they are tied to an asset like your car for a car loan or your house for a mortgage, or unsecured. Unsecured debt is not tied to an asset. This is usually credit card debt, medical bills, and signature loans. The majority of people who file Chapter 7 have no non-exempt assets. You must take a Chapter 7 Means Test to see if you qualify. Your income has to be lower than the median income in your state but if your income is greater, other calculation can be made to determine if you qualify. Chapter 7 is for you if: you don't have much property other than the basics, you don't have any or much money left over at the end of the month after paying the basics. Benefits are: most of your un-secured debts can be completely eliminated, the process moves quickly, creditors can't contact you after you have a "stay" put in place or after the discharges are complete. Personal bankruptcy is considered the last resort because the results are long-lasting. Bankruptcy stays on your credit report for 10 years and makes it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. While this doesn't sound too good, it is a legal procedure that offers fresh start. Chapter 7 Bankruptcy must be filed in federal bankruptcy court. The filing fees is around $299 and of course, attorney fees are additional and vary.
Bankruptcies, GM Bankruptcy, Tucson Bankruptcy Lawyer,
Chapter 7 Bankruptcy is possibly not for you if any of the following apply:
You can't afford the attorney's fees to file. Your income is significantly greater than the average for your state. You own joint property with other family members. If you're expecting to receive a large amount of money within the next few months. If you intend to hide "property" or bend the rules. This is called fraud and is illegal and punishable by law. If you have property that you are just not willing to part with. If you have "toys" or jewelry, they could be sold to help pay off your creditors.
Only you can decide if Chapter 7 Bankruptcy is right for you. After taking these items into consideration, you still feel that you qualify and this is the step you need to take to get debt relief you need to contact a Bankruptcy Attorney in your state. They can tell you the necessary steps to take, what paperwork and documents you must have on hand, fees and any other information to help you get started filing.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Chapter 7 Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment