Things To Consider If You Want File For Chapter 7 Bankruptcy
If you are one of many people who are seeking debt relief options, you may benefit from looking into Chapter 7 bankruptcy. It is one of the fastest and most common forms of bankruptcy that people file for. It allows you to wipe out your debt in as little as three to four months. However, it is only suitable for people who have certain types of debt that are eligible to be discharged. If you have a mortgage or fail the means test to qualify, you will not be able to file for Chapter 7 bankruptcy. To learn more about the requirements, meeting with a Chapter 7 bankruptcy lawyer can help you better understand if it is right for you. Here are some things to consider if you want to know if you should file for Chapter 7 bankruptcy.
You Pass the Means Test
To determine if you are eligible to file Chapter 7 bankruptcy, you must pass a means test. If you make more than the median income of an average household of your size in your state, you will not qualify. This is usually the average amount of your monthly income.
You Have Eligible Debt
People who file for Chapter 7 bankruptcy have eligible unsecured debt that can be eliminated. Medical bills, credit card debt, utility bills and other types of debt can be discharged if you file for Chapter 7 bankruptcy. However, other debt such as student loans and certain taxes owed to the government are not eligible. If you have ineligible debt, you may want to reconsider if Chapter 7 bankruptcy would help you.
You Want to Achieve Debt Relief Quickly
Chapter 7 bankruptcy is a popular form among many people because it allows you to get rid of your debt quickly. Generally, the entire process can be completed in about three to four months. Unlike Chapter 13 bankruptcy, which is done over a period of several years, Chapter 7 bankruptcy allows you to achieve financial freedom more quickly.
Consider Your Debt Relief Options
Bankruptcy can have a positive effect if you do the process right. Filing for bankruptcy is a major decision that should be carefully thought through. Some clients feel pressure to file right away because they want to get the process over with so they can work on recovering their credit. However, you should take your time and carefully evaluate all of your options, including debt relief options outside of bankruptcy. You should only commit to bankruptcy if it offers you the most advantages. Talk to a trusted Chapter 7 bankruptcy lawyer now if you have questions about bankruptcy.