Chapter 7 Bankruptcy Lawyer
Chapter 7 bankruptcy, also known as liquidation bankruptcy, can wipe out most of your unsecured debt and help you get a financial fresh start. If you are drowning in debt, you may be thinking about declaring Chapter 7 bankruptcy, but don’t know everything about it. Although this type of bankruptcy does have its positives, you may have to give up some of your property, and your credit score may take a hit.
Differences Between Chapter 7 and Chapter 13 Bankruptcy
Individuals who are struggling to pay down debt can either file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 allows you to clear most of your unsecured debts within a few months while Chapter 13 requires you to repay your creditors within three to five years. For Chapter 13 bankruptcy, you must earn enough income to afford the payments and be below the maximum debt limits.
How to Qualify for Chapter 7 Bankruptcy
If you want to file for Chapter 7 bankruptcy, you will have to meet several requirements first, including:
- Your income has to be less than the median income for the same-sized household in your state
- You can’t have filed Chapter 7 bankruptcy in the past eight years
- You must complete a credit counseling course within 180 days before filing
- You can’t have filed Chapter 7 bankruptcy in the past six years
What Can and Can’t Be Discharged During Chapter 7 Bankruptcy
Chapter 7 bankruptcy can typically clear your unsecured debts, such as medical bills, credit card debt and personal loans. This type of bankruptcy can’t, on the other hand, discharge other debts, like child support, student loans, alimony, tax debt and court fees.
Additionally, your creditors may object to debts from getting discharged if they were made too close to your filing date. Generally, you want to stop using your credit cards at least 90 days before declaring bankruptcy.
Why You May Consider Hiring a Chapter 7 Bankruptcy Lawyer
Chapter 7 bankruptcy can involve many complexities, so it’s wise to have a knowledgeable and experienced lawyer on your side. A Chapter 7 bankruptcy lawyer can make sure that you file all your paperwork by deadline and prevent you from making costly mistakes. If you work with a skilled lawyer, you have a higher chance of your bankruptcy getting approved.