Frequently Asked Chapter 7 Bankruptcy

What are the Benefits of Filing for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, is one of the most powerful options for dealing with debt. It can help you step out of poverty and begin with a clean slate and a fresh start. Filing for Chapter 7 provides you with protection from creditors as soon as you file with the bankruptcy court. This means all collection phone calls, letters and garnishments are required to stop.  In addition, after filing, your missed payment and previous negative marks will no longer hurt your credit score.

What Type of Eligibility Restrictions Exist When Filing for Chapter 7?

Are you wondering if you qualify for Chapter 7 bankruptcy? You will need to complete a bankruptcy "means test" in order to determine if your income is low enough to qualify a Chapter 7 filing. But this may encompass more income levels than you think. If you earn a significant monthly income, you may still qualify for Chapter 7 if your monthly expenses are large. In summary, if your monthly income is less than the median income for a family/individual of your size in your state, you will pass and can continue on to file Chapter 7. If you have questions on whether or not you qualify for this type of bankruptcy, contact Galen Pierce for a free consultation.

What are the Drawbacks of Filing for Chapter 7 Bankruptcy?

Filing for Chapter 7 bankruptcy isn't right for everyone, even if it feels like the best option for your situation. It's important to consider the drawbacks of filing this way.

You may not qualify to file for Chapter 7 if you make more money than the median income. If you think this applies to you, you can still file Chapter 13 bankruptcy.

When filing Chapter 7, you may be required to give up expensive items. If you know you have expensive property that you are unwilling to let go of, then Chapter 7 might not be the best option for you.

Contact the best local, affordable Chapter 7 bankruptcy attorney, Galen Pierce, for a free consultation to discuss which option will be best for you and your unique situation.