Important Facts About Chapter 7 Bankruptcy

  • Chapter 13 Bankruptcy

Important Facts About Chapter 7 Bankruptcy

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If you are facing harassment from credit card companies due to non-payment or delay in bill payment, then bankruptcy might be a good option to get rid of the constant stress. According to Dallas based bankruptcy law firm Recovery Law Group Chapter 7 bankruptcy is the best way to get rid of your debts if you can qualify for it. Filling for Chapter 7 bankruptcy will get rid of the following debts:

  • Private student loans
  • Medical bills
  • Personal loans
  • Credit card debt
  • Lawsuit claims and judgments

However, there are specific rules regarding the discharge of certain debts especially court judgments and federal taxes. The debts which won’t be eliminated in Chapter 7 bankruptcy include alimony and childcare payments, court fines, recent taxes, criminal restitution, and any debts which the debtor incurs after filing bankruptcy papers. If you are worried about debts and wish to get rid of them, you need to hire qualified bankruptcy lawyers. Call 888-297-6023 to know which debts can be eliminated through bankruptcy by consulting with experienced bankruptcy attorneys.

Qualifying for Chapter 7 Bankruptcy

Everyone cannot opt for chapter 7 bankruptcy. The monthly income should be less than the state median to qualify for this bankruptcy chapter. In case the monthly income is higher, you need to pass the means test. This test is used to determine whether you have enough disposable income to pay your debts through a repayment plan.

Apart from the means test, you should not have any dealing in bankruptcy court within 180 days prior to filing for bankruptcy. Additionally, you should have completed the mandatory credit counseling course before filing papers. In case you fail to qualify for Chapter 7, chapter 13 is another option available to get rid of your debts. However, if you qualify for chapter 7 bankruptcy, you will need to submit certain documents with the bankruptcy court. A bankruptcy lawyer can help you gather all relevant financial information and file for bankruptcy.

Both federal and state government provide exemptions to bankruptcy filers. You can choose between either of those sets of exemptions to protect your property. Any non-exempt property you have is liquidated to clear your debts to your creditors.


    2023-04-21T13:31:04+00:00