Due to the instability in today’s market, more and more Americans are finding themselves drowning in debt and other financial difficulties. Paying off student loans, mortgages, and other financial obligations can become really stressful, especially for individuals already struggling to make ends meet. The stress can even double when you have to deal with constant calls and emails from creditors. The U.S. is facing $11.4 trillion in consumer debt. Such a startling amount only proves how wide-spread the problem is. If you are struggling in a similar situation, one of the options you have is to file for a Chapter 7 bankruptcy.
According to the website of Bradford Law Offices, PLLC, Chapter 7 or a liquidation bankruptcy is commonly sought by individuals or families looking for financial relief. It primarily allows debtors to liquidate or sell assets that they can use to pay off their credit. It is particularly advantageous because it can help you discharge or even eliminate existing debts. It can also help mitigate cases of creditor harassment, protecting you from the stress of constant phone calls or the possibility of having their property repossessed. More than that, Chapter 7 bankruptcy can also speed up the debt relief process and exempt specific assets from getting included in the liquidation.
There are certain situations that make some individuals ineligible to file for Chapter 7 bankruptcy. This will depend from case to case, but eligibility is primarily determined by
Because of a certain criteria, not all individuals are eligible to file for a Chapter 7 bankruptcy. Your eligibility will primarily be determined by your personal income. The means test will help determine if your income falls within the assigned bracket for financial support through Chapter 7 bankruptcy. Through the means test, the court makes sure that only debtors with the most pressing financial needs can benefit from such support. A set median income, which differs from state to state, helps determine where a debtor’s income falls in the scale. Aside from your income, the court will also check if you have any disposable income and how much typical expenses are. If you do not meet the requirements of the means test, it might be best to file for another form of bankruptcy.
Financial issues can be a huge source of stress for families and individuals. Thankfully, there are several options you can take to ease the heavy burden caused by mounting debts and other financial obligations. If you feel like Chapter 7 bankruptcy is the best option for you, don’t hesitate to seek out legal counsel and consult with an experienced bankruptcy lawyer immediately.