Chapter 7 Bankruptcy
Sometimes, we go through our financial struggles. It can quickly become difficult to make minimum payments and cover basic costs of living. Bankruptcy laws are in place to help those who are in this kind of situation. Filing for bankruptcy can help you manage your debt or even eliminate your debt. There are several different types of bankruptcy. Chapter 7 is by far the most common type of bankruptcy filed. Also known as “straight” or “liquidation” bankruptcy, Chapter 7 bankruptcy can relieve you of most of your unsecured debt. Unsecured debt includes things such as credit card debt and medical bills, as well as personal loans. The bankruptcy court will appoint a trustee who is tasked with managing your assets and selling non-exempt assets in order to satisfy legitimate creditor claims. Chapter 7 bankruptcy can be your chance at a fresh start, but it can still be daunting to enter into the bankruptcy system. Fazli & Associates will not only counsel you on your bankruptcy choices, but can also offer dedicated and dependable legal guidance every step of the way. We are here to help you get your fresh start and put you on the path to a brighter financial future.
What are the Benefits of Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a popular choice for many reasons. First, it is considered to be the fastest and simplest bankruptcy type. Also, you will immediately see the benefits of filing for Chapter 7 bankruptcy. As soon as you file, an automatic stay goes into effect. This means that most creditors are automatically and immediately prevented from trying to collect what you owe them. Creditors are prevented by the automatic stay to do things like garnish your wages or trying to collect on your assets by doing things like repossessing your car or other property.
Additionally, while the trustee is empowered to sell your assets in order to satisfy creditor claims, there are many exemptions which prevent certain assets from being subject to sale. Bankruptcy law exempts basic need assets such as your house, car, and equipment that is necessary for you to work. This means you retain these assets even after bankruptcy. This is because bankruptcy is intended to give you a fresh start and you will need these basic exempt items in order to do so.
The central benefit to Chapter 7 bankruptcy is the fact that, at the end of the process, almost all of your debts will be cleared, referred to as “discharged,” by the bankruptcy court. This can be the big second chance you are looking for. The chance to start with a clean slate is available to those who qualify for Chapter 7 bankruptcy. If you are looking for a new beginning, talk to the trusted bankruptcy attorneys at Fazli & Associates. We will discuss your options and start working towards a brighter financial future.
Who Can Qualify for Chapter 7 Bankruptcy?
While the benefits of Chapter 7 bankruptcy are great, not everyone qualifies for filing Chapter 7. There are several requirements that must be met. First, almost everyone looking to file for Chapter 7 must participate in an approved credit counselor session. Additionally, Chapter 7 is not available to those who have already received certain types of bankruptcy discharge in the last six to eight years.
The central qualification for Chapter 7 bankruptcy is, however, the “means test.” The means test is calculated to see if you could afford or have the “means” to pay off a meaningful portion of your debts. If you have this ability, you fail the means test and, most likely, will not be able to file Chapter 7 bankruptcy. The alternative would most likely be filing Chapter 13 bankruptcy in which you would be put on a debt repayment plan.
To file Chapter 7 bankruptcy, you will need to fill out a petition, along with several other forms. These forms will ask you to describe things like your assets and property as well as your current income. You will also need to outline your monthly living expenses and your outstanding debts. Additionally, you have the opportunity to list the property you are claiming as exempt and therefore protected from trustee sale. It is important that these forms be accurately and thoroughly completed. Having Fazli & Associates by your side means that we will work with you to make sure all of your bankruptcy court filings are complete and accurate. We are here to set you up for success and represent you in bankruptcy court.
Chapter 7 Bankruptcy Attorneys
Considering bankruptcy can be daunting. Keep in mind that bankruptcy laws are in place for a reason. They are available to those who are struggling financial to give them the chance at a fresh start. Fazli & Associates is committed to providing our clients with the legal support needed to smoothly navigate the bankruptcy process. We are here for you. Contact us today.