Do You Qualify For Chapter 7 Bankruptcy?
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Do You Qualify For Chapter 7 Bankruptcy?
Many people, at some point in their lives, will find themselves in a desperate financial situation. Some of them turn to credit counselors, apply for public assistance, or other strategies, which may help them get on their feet again. However, one option that some people may be eligible for, but may not think about, is Chapter 7 bankruptcy. Thankfully, the public opinions around bankruptcy are slowly changing, and it does not hold as much stigma as it once did. This is great news, because bankruptcy can be a very good option for many different people, and can give them the tools they need to move forward in a positive way.
Chapter 7 bankruptcy is also known as a “liquidation bankruptcy,” because it can eliminate most or all of your unsecured debts. These debts include things like medical bills, credit cards, and personal loans. Chapter 7 is also the quickest and easiest type of bankruptcy available, making up nearly 60% of all the bankruptcies filed each year.
There are several things you should do, if you are considering filing for bankruptcy. First of all, you must take and pass what is known as a “means test.” This test will look at your financial situation, including your income, expenses, and both your secured and unsecured debts. The requirements for the means test vary by state, but once you pass this test and are deemed eligible, you can move forward with reclaiming your financial future!
After completing the means test, you may reach out to a qualified Chapter 7 bankruptcy attorney in Los Angeles, and speak with them about your circumstances. Depending on how simple or complex your finances are, your lawyer will suggest potential options, to help you shield as many of your assets as possible, while discharging as many of your debts as possible.
Many different people, from diverse backgrounds, may benefit greatly from a Chapter 7 bankruptcy. If you have been considering this option, but haven’t yet taken any steps to determine your eligibility, here are a few signs that you might qualify:
- Your debts total half or more of your annual income
- You have little to no disposable income
- It would take more than 5 years for you to pay off your debts, even with extreme lifestyle changes
- Your monthly income is below the median level in your state
- Your debts significantly impact your life, including your relationships and your physical or mental health
Ready to learn more about filing Chapter 7 bankruptcy in Los Angeles? We’re here to help. Reach out to Martin & Bontrager today for your free consultation.