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How Much Debt You Need to File Chapter 7 Bankruptcy

how-to-file-for-bankruptcyIf you are bankrupt, you are not required to have reached any certain level of debt to be qualified for Chapter 7 bankruptcy. The amount of your income may be the key factor that determines your candidacy for a Chapter 7 bankruptcy protection and you will be required to take a special test called a “means test” to determine whether you are a good fit for it.

Decide on Your Situation and Find the Answers to Questions such as:

Whether You Have the Right to File for Chapter 7 Bankruptcy

When you are overwhelmed with more debt than you can return back and you are asking yourself – “What are the effects of filing chapter 7?”, you may look at filing into bankruptcy as a mean to protect yourself from your debts. Filing for chapters 7 bankruptcy can give you the debt relief you require if you have been struggling with too much debt for your creditors and you can’t afford to pay it back. These are the criteria that will guide you in deciding whether or not you can file a Chapter 7 bankruptcy. You may qualify if:

  • In your capacity as an individual or a business owner- protest
  • The absence of a bankruptcy discharge in the previous six to eight years
  • You are eligible, as you have been accepted into the court-ordered counseling within the recent six months.

An attorney can assist you in determining your eligibility for a Chapter 7 bankruptcy filing and will offer you knowledge when it comes to the procedures that you need to follow in your filing and in bankruptcy proceedings. These courses can illustrate the implications of Chapter 7 relief debt and the advantages as opposed to disadvantages.

Procedure Involved While Filing the Chapter 7 Bankruptcy

Your attorney will explain you all about the bankruptcy and its ways in terms of the process and procedures of the case when you are more willing to free yourself from the burden of debt.

1st step is to go ahead and file a debtor’s petition, after which your creditors will be given a notice of your filing. Therefore, pursuant to the Automatic Stay provisions, their attempts to obtain payment from you will be put to halt at once. The Automatic Stay will enable you to compile a plan of how you want to develop your financial future, including the payment of your debts.

Additional paperwork and documentation you must provide will include:

  • Do not ignore the actual need for the total worth of your assets
  • The total of your debts, creditors, and the specific amount that should be paid should be listed
  • The financial report ought to be comprehensive and completed in terms of income statements
  • Given that tax documents and returns constitute the basic source of tax data, the agency should set up a  mechanism for soliciting taxpayer authorization
  • Prove of latest and authentic counseling service record

At the completion of the required paperwork, your case will find its way before the courts. Analyzing issues affecting your financial wellbeing will form the initial part of the bankruptcy filing. After your bankruptcy trustee discharges your petition, you are legally free from all your debts that have been eradicated in Chapter 7.

While filing chapter 7 bankruptcy option can be a good start in getting rid of the debt, be sure to examine all the pros and cons of the procedure.

Only A Professional Lawyer Can Assist You

Talk to one of our team members right now, so that we can start giving you the relief from such financial burden. Our firm of attorneys is dedicated to the needs of individuals and small businesses in Chapter 7 and Chapter 13 filings. Apart from it, we could demonstrate men and women that are qualified for Chapter 11th rearrangement bankruptcy and in addition Chapter 12- family types. If you want to reach Lee Law Firm, Florida or to current bankruptcy attorney, call us today or speak to a member of our team and start planning how to return to a good financial health.

Michael Lee, Esq.

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