Are you struggling to make ends meet every month due to your debt? Many people who are in this situation may benefit from a Chapter 7 bankruptcy. Filing for Chapter 7 bankruptcy is most suited for people who have limited income and are unable to keep up with credit card and loan payments. Chapter 7 is a liquidation bankruptcy, where many of your possessions are sold to repay your debt. If you have property, like a home or car, which you want to keep, you should instead consider Chapter 13, or reorganization bankruptcy.
While Chapter 7 bankruptcy is an option to help erase certain debts, it is not for everyone. Before filing for Chapter 7 bankruptcy, it is important to consider these factors, and speak with a qualified bankruptcy attorney in Roswell.
What debts can be discharged in a Chapter 7 bankruptcy?
Several types of debt can be discharged in Chapter 7 bankruptcy including credit card debt, hospital and medical bills, unsecured lines of credit, and past due utilities bills.
What is the means test?
The means test is used to determine whether a debtor is eligible to file for Chapter 7 bankruptcy. If your income is less than the median income from your state you will generally pass, if you make more than that, you will need to consider filing for Chapter 13 bankruptcy instead.
Is Chapter 7 bankruptcy right for me?
If most of your debts are unsecured, such as medical bills and credit cards, you are under the income limit for your state, you understand the ramifications of bankruptcy, and you don’t see your situation improving in the near future, then Chapter 7 bankruptcy may be the best option for you.
Would you like to learn more about Chapter 7 bankruptcy? Reach out to the legal team at Charlton & Glover, P.C. to schedule your free consultation and learn more about your financial options.