If you are reading this then you are probably asking yourself “Should I file bankruptcy?” A Chapter 7 bankruptcy is the most common form of bankruptcy. A chapter 7 bankruptcy can also be referred to as liquidation; although with most cases, there is little if any actual liquidation involved. Chapter 7 usually means that if you have any assets they get liquidated to pay the creditors. Of course, there are many exemptions. An experienced bankruptcy lawyer can go over the different chapters of bankruptcy and explain in more detail what chapter 7 is.
Who Should File A Chapter 7 Bankruptcy
In general, chapter 7 best suits persons:
- with income at or below the state median
- unable to adequately meet bills and living expenses each month
- having little or no assets besides clothing and furniture
- Having assets with little to no equity
- Having medical bills
- On social security or disability
- Being sued or garnished
- With levied bank accounts
- Facing foreclosure
- With repossessions
Under Chapter 7 an individual or business can ask the courts to erase the debts owed creating a fresh start. As soon as you file for bankruptcy you are immediately granted an automatic stay preventing creditors from contacting you. This also stops any impending foreclosure sale, garnishment or repossession. If creditors fail to abide by the automatic stay they can be fined a lot of money.
In order to decide whether Chapter 7 is really necessary for you as a debtor, you will need to take a Chapter 7 Means Test. This test simply compares your income to the median income in your geographic area for your family size. This ensures you, as a debtor, are not trying to abuse the system. The majority of debtors will pass the Means Test. Contact an experienced New York or New Jersey bankruptcy lawyer right away to discuss your particular situation. Karra L. Kingston is an attorney that represents debtors who are facing bankruptcy. Call today to find out what options you may have.
To Learn More About Filing Bankruptcy See Below:
Bankruptcy Basics
Should I Hire a Bankruptcy lawyer
How Much Does Filing Bankruptcy Cost
Is Filing Bankruptcy Bad?
How Can I Stop a Wage Garnishment?
Chapter 7 Bankruptcy
Chapter 13 bankruptcy