During these difficult times, you may be worried about how stay afloat. But, there are options to help you get out of debt and moving towards a your financial fresh start. Before you make any decisions, you should take time to speak with a qualified bankruptcy attorney to go over the options that will work best for you. However, that is not to say that you should not take time to do some research first. So, let’s quickly go over how Chapters 7 bankruptcy can benefit you:
Chapter 7
If you are looking to wipe out your debts, this is a great option. This is the most common form of bankruptcy. If you qualify, you will be able to discharge your obligations to pay certain debts that are unsecured. In order to know if you qualify, you will need to pass a “means test.” The means test is used to determine your eligibility to file under Chapter 7. Click here to read more about how a means test works.
A Chapter 7 bankruptcy will also take care of any deficiencies like a home foreclosure or vehicle repossession. You do not need to enter a repayment plan under Chapter 7. Instead, any non-exempt property will be sold by the trustee to repay your creditors. This process is handled under the supervision of the court and in line with the Bankruptcy Code. However, the property that will qualify as exempt will depend on your state’s statutes. So, it is important to discuss your assets with your attorney prior to filing.
How Chapter 7 Works
The court will appoint a bankruptcy trustee to your case. The trustee will collect your assets and liquidate them as long as they are not exempt. The money collected from selling your assets will be distributed to the creditors in your case. Not all debts can be discharged in a Chapter 7 bankruptcy. Things like student loans, child support, alimony, and other nonexempt debts will not be included. However, you can keep your house, car, and other secured items by signing a reaffirmation agreement.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.