Bankruptcy is not an ideal situation for any business or individual. However, it is a common occurrence, and its impact can be devastating to many livelihoods. Chapter 7 bankruptcy is the most preferred option among individuals and enterprises experiencing financial constraints. Chapter 7 qualifies parties for debt forgiveness, especially concerning secured loans. Your creditors are barred by law from collecting their debts following applying for Chapter 7 bankruptcy. The application offers you relief, allowing you to secure some of your property and avoid other debts in the process. Filling for Chapter 7 bankruptcy is one way you can protect your interests when you go bankrupt; it can secure your future income and prospects. Unfortunately, many people are unaware of the associated benefits, necessitating hiring a Chapter 7 bankruptcy attorney.
Hiring a law firm specializing in bankruptcy law, specifically Chapter 7 bankruptcy, is a crucial advantage. The firms have years of experience dealing with different clients making them your best chance to getting the most out of the process. Bankruptcy law is a complex field with many pitfalls that may befall you. However, with a Chapter 7 bankruptcy attorney, you can rest assured your interests are protected because they can identify any potential threats to your case and handle them efficiently. Chapter 7 bankruptcy involves valuable assets; going it alone could cost you a lot.
Chapter 7 bankruptcy generally wipes out unsecured debts such as utility bills, back rent, medical bills, personal loans, and credit card charges. Analyzing your debt will give you insight into whether Chapter 7 bankruptcy is relevant to your case. A bankruptcy attorney can guide you in the process by identifying and eliminating dischargeable debts. With this information, you can make a good decision on what is best for you or your business.
Confirming Your Eligibility
While Chapter 7 bankruptcy is common with many benefits, not everyone qualifies to apply. It is advisable to check your eligibility before initiating the process. For example, you qualify for Chapter 7 bankruptcy if you are below the state's family median income. However, some exceptions can qualify those who are above this median. You can subtract your expenses to match the state's median income, increasing your qualification chances. If you are still above the median but cannot make your debt payments within five years through the Chapter 13 bankruptcy, you may qualify for Chapter 7 bankruptcy. A bankruptcy attorney can advise you on your eligibility, ensuring that you make the right decision.
Schedule an appointment with a bankruptcy law firm, such as McCool & McCool, to get started.