Bankruptcy can be a frightening prospect for many individuals. However, if you are struggling with debt and can’t get ahead, no matter what you do, it may be time to consider the option. The Chapter 7 option allows you to discharge your debts altogether, giving you a clean slate. But is this option a good fit for you?
The Means Test
The first step in the process is to go through a means test to determine if you are capable of paying back at least some of your debts. The first thing an attorney will look at is whether you make below the median income for your area and household size. If you are below this income level, you automatically qualify. Otherwise, the attorney will look at how much income you have left after paying your allowable bills to determine if you have the disposable income to pay some of your debts. If not, you will qualify.
Should You File?
Once the attorney determines you qualify for Chapter 7 bankruptcy, you must still decide if you want to move forward with the process. Discussing all your options with an attorney is essential to make the right choice for your unique situation. Even if you qualify for this type of bankruptcy, it may still benefit you more to file for a Chapter 13 bankruptcy. In either case, your attorney should be able to steer you in the right direction.
Get Back on the Right Track
Financial troubles can be difficult to recover from. Even though a Chapter 7 bankruptcy will stay on your credit report for years after you file, you are likely to recover much faster once you file bankruptcy versus trying to get out of debt on your own. As soon as your debts are discharged, you are back on track to improve your financial situation.
Never head into a bankruptcy without the help of an experienced attorney. If you are even considering filing for Chapter 7 bankruptcy, contact us to talk to an experienced attorney about your options.