Sometimes we make poor financial decisions that affect us for years into the future. Sometimes we end up losing everything by attempting to try a new business and sometimes we are hit hard with medical bills that we just can’t pay any longer. No matter your financial past or your current reasons for considering Chapter 7 bankruptcy, there are some important facts that you should know before you file.
- There is an income limit. There are different formulas to determine if you are financially eligible to file for Chapter 7 bankruptcy. Often these are known as “means tests,” meaning they look at the average income in your state and compare that against the amount of debt you have.
- You can attempt to protect some assets. With Chapter 7 bankruptcy, you can attempt to protect some of your assets from being sold to pay off your creditor debts. Usually people will attempt to protect their home or car, but the assets you choose to protect are up to you and your legal counsel.
- Some debts can’t be erased. While many types of debt can be forgiven or paid off for a fraction of the original price, debts like student loans cannot be negotiated or erased in any type of bankruptcy filing.
- You should obtain legal counsel. With legal counsel, you can better navigate the maze of legal paperwork and negotiations that surround the process of filing for any type of bankruptcy, including Chapter 7 bankruptcy.
There are bankruptcy attorneys in every state ready to help you discuss your options. Learn more here at Groff Law Firm, PLLC.