Chapter 7 bankruptcy can be a viable option for those debtors who are having extreme financial difficulties. Instead of struggling to pay back your debt you may qualify to have some or all of it discharged. However, qualifying for this financial move isn’t easy; thousands of people get denied every year. It’ll often come down to the debt you owe, how you acquired that debt, your income, and the creditors you’re dealing with.
All debt is not eligible for discharge during the bankruptcy process. Generally, unsecured debt tends to be the debt that most people are able to get rid of. However, legitimate debts, and debts that are secured, will still need to be paid back after the bankruptcy process is over. These types of debts may include state and federal taxes, student loans, certain fines and penalties, debts from certain judgments, and so on. You should talk with a Professional Chapter 7 Bankruptcy Attorney in MD to see whether your debt is eligible or not.
Your income will also play a big part in whether or not you’ll be allowed to file for Chapter 7 bankruptcy. Before your case can even be consider for this bankruptcy option you’ll have to go through a “means test.” This test compares your income to the median income in your state. Having income that’s equal to, or less than the median, should make you eligible. However, those whose income is greater will likely be ineligible. In fact, your creditors may attempt to block your bankruptcy filing if it’s determined that you have too much income. The decision to continue on will ultimately come down to the courts. Laura Margulies and Associates, LLC may be able to help you plead your case.
Be prepared to part ways with some of your property. Chapter 7 bankruptcy will require that you sell off non-exempt property in order to pay your creditors and lenders. Don’t panic. Courts can be very lenient when it comes to allowing you to keep certain assets. You should be able to keep the majority of your personal assets (i.e. house, household items, cars, etc.). Check with a Professional Chapter 7 Bankruptcy Attorney in MD to find out the exemption laws in your state. Visit website for more information.