How much debt you have accrued is not a factor in the bankruptcy filing. Your income might affect your ability to file for this bankruptcy protection and a means test might be completed to determine whether or not you are eligible for it. If you are not sure about your decisions and options, you should seek help from a Benenati Law Firm bankruptcy attorney.
Are You Eligible to File for Chapter 7 Bankruptcy?
If have incurred more debt than you can afford to pay back, you may want to file for Chapter 7 bankruptcy. This type of bankruptcy provides debt relief. To know if you are eligible for this bankruptcy protection, ensure you meet certain criteria. Your attorney can help you with this process and guide you through it. Also, they can explain how Chapter 7 debt relief may benefit you.
Chapter 7 Bankruptcy Benefits
A lot of people are reluctant about seeking bankruptcy protection due to fear of losing their possessions. When you file for Chapter 7 bankruptcy, you can discharge your existing debt load. Also, you might be able to keep your personal possessions such as your car and home with this bankruptcy. Chapter 7 will discharge all qualifying debts and you don’t need to commit to a repayment plan. In addition, all collection activity should stop after you have filed your bankruptcy petition.
Navigating the Chapter 7 Bankruptcy Process
If you have enough debt burden, your attorney can help you understand the steps involved when filing a bankruptcy petition and court procedures. After filing a petition, you may need to submit additional paperwork and documentation such as a list of your assets, debts, amounts owed, and creditors, an income statement, tax records and filings, as well as proof of approved credit counseling.
After you prepare proper documentation, you can file your case with a bankruptcy court. All your creditors will be notified about your filing. The court will assign a case trustee who will assess your current financial situation. Once Chapter 7 bankruptcy has discharged your case, all your discharged debts will no longer be your obligation.
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Discharging of Your Debt in Bankruptcy
Through Chapter 7 bankruptcy protection, you might be able to have your debts completely discharged. But you might still need to repay some debts such as spousal and child support, debts you accrued through criminal activity, debts you owe to the government, and some tax debts. Your attorney can guide you through the bankruptcy process and tell you which debts can be discharged, how bankruptcy will affect your credit, and how you can start over.