Is Chapter 7 Bankruptcy Right For You? Ask A Schererville Chapter 7 Bankruptcy Attorney
Deciding to file for bankruptcy is a big decision, and many people who are considering bankruptcy deliberate on what to do for a long time before committing to filing a bankruptcy petition. There is a lot to consider when you are thinking about filing for bankruptcy. As an initial matter, it is important to determine whether or not you should file for Chapter 7 bankruptcy, or Chapter 13 bankruptcy. There are also a great deal of pros and cons to consider when deciding if bankruptcy is the right debt discharge solution for you.
Both Chapter 7 and Chapter 13 bankruptcy are commonly used by individual debtors who have accumulated too much debt that they are unable to repay. Chapter 7 bankruptcy is the more popular form of bankruptcy for individual filers because it is a quick and efficient way to discharge most, if not all, of your debts. Chapter 13 bankruptcy often requires a repayment plan, which means that the debtor will be repaying debts for a long time after the bankruptcy proceeding is over. Chapter 7 bankruptcy, on the other hand, offers a clean slate. At the end of Chapter 7 bankruptcy proceeding all of the debtor’s debts that are eligible for discharge through bankruptcy will no longer exist.
Eligibility Is The First Hurdle
The first hurdle that many individuals who are interested in filing for Chapter 7 bankruptcy face is eligibility requirements. There are very specific eligibility requirements when it comes to filing for Chapter 7 bankruptcy. For starters, debtors cannot make too much money. A debtor’s monthly eligible income will be compared to the state’s median income level in what is known as a means test. If a debtor has more disposable income than the state’s median income level, then the debtor will most likely be ineligible for Chapter 7 bankruptcy and will have to file for Chapter 13 bankruptcy instead.
No Recent Bankruptcy Activity
The next major hurdle that people filing for Chapter 7 bankruptcy face is ineligibility due to the fact that they have filed for bankruptcy within the past six months, or because the debtor has had debt discharged either through Chapter 7 or Chapter 13 bankruptcy within the last six or eight years, respectively. Debtors who are seeking debt discharge through Chapter 7 bankruptcy must have no recent bankruptcy activity on their record.
Let Us Help You With Your Chapter 7 Bankruptcy Proceeding
It can be difficult to determine whether or not Chapter 7 bankruptcy is right for you. Every individual’s bankruptcy situation is unique to their particular circumstances, financial situation, and debts. While Chapter 7 bankruptcy might be the perfect solution for one individual, it may not be the right debt resolution option for someone else. Not only that, but debtors must be eligible in order to file for Chapter 7 bankruptcy. If you are considering filing for Chapter 7 bankruptcy in Indiana, it is important that you discuss your situation with an experienced bankruptcy attorney in Schererville as soon as possible. The bankruptcy lawyers at the Law Office of Kevin M. Schmidt, P.C. are knowledgeable and experienced, and are ready to help you.