Is Chapter 7 Bankruptcy Right for Me?
Determining what type of bankruptcy to file for is an important decision. In certain cases, you may only be eligible for one or the other. Sometimes you’ll be eligible for both. When this is the case, it’s best to consult with a bankruptcy lawyer. Today we’ll discuss what circumstances should cause you to lean towards Chapter 7 bankruptcy. Remember, making the right decision is crucial to helping you free yourself from debt.
Are You Eligible for Chapter 7 Bankruptcy?
You can’t file for Chapter 7 bankruptcy unless you meet certain criteria. The primary stipulation has to do with your income; you can’t make more than a certain amount of money per year to qualify. You will take a means test that measures your disposable income. If you pass this part, you will be eligible. Something that may disqualify you from filing is if you filed bankruptcy previously and the allotted amount of time hasn’t passed for you to be able to declare again. Finally, if you’ve committed fraud, you’ll obviously be immediately disqualified.
Take a Look at Your Debts
Before filing for Chapter 7 bankruptcy, you should determine if it’s worth it. Chapter 7 bankruptcy won’t relieve you of all debts. Child support, alimony, taxes, student loans, and recent credit card debt for unessential items won’t be covered. If these make up the majority of your debts, declaring Chapter 7 would most likely do more harm than good.
If There is Property You Don’t Want Creditors to Seize
While it’s true that Chapter 7 bankruptcy will put an automatic stay on essential items such as your car and house, it won’t protect everything from being taken. Expensive luxury items, collections, and second cars or homes can be taken to pay the debts. If these items are much too valuable for you to give up, then Chapter 7 bankruptcy may not be the way to go. Make sure to weigh your options, though. If you can part with these things, it is better to get yourself out of debt than to cling to nonessential items.
Contact a Bankruptcy Lawyer at RGG Law
If you’re considering filing bankruptcy, contact RGG Law first. Our expert bankruptcy lawyers can help guide you through the process and determine what options are best for you. They are well versed in bankruptcy law for both Chapter 13 and Chapter 7 bankruptcy. Contact us today to schedule a free consultation. Don’t be burdened by your debt any longer, let us help you reclaim your financial future.