There is no threshold that you must meet to file for chapter 7 bankruptcy. Some bankruptcy chapters have debt limits, but no minimum debt. With this in mind, you can and should consider whether filing for bankruptcy makes sense in your current situation. A better question I should ask is whether I qualify for Chapter 7 and whether it will give me the relief I am looking for.
Should you even choose bankruptcy?
To determine if bankruptcy is the best solution for your current situation, the first thing you need to do is determine if you are eligible to file a Chapter 7 lawsuit. Chapter 7 Bankruptcy is what most people think when they think of bankruptcy, which is complete liquidation. In the case of Chapter 7, you can get out of debt for a relatively short time (4 to 6 months) and start over. Contact BLC Law Center bankruptcy attorney near me to know more clearly.
Chapter 7 eligibility
This can be determined by determining whether you meet the requirements to examine the condition. You are eligible if your current monthly income (or CMI, your average from the last six months of your income) is below the current state average. If your CMI is higher than the country’s average income, you can do an Average Test calculation to see if you qualify.
Are your debt eligible to be paid off
Even if you qualify to file a Chapter 7 lawsuit, you want to make sure it will give you the relief you’re looking for, a fresh start. To determine this, it is important to consider the type of debt you are trying to pay. Most debts (including guaranteed and unsecured) are repayable, although withdrawing the guaranteed debt will likely mean forfeiting the collateral.
There is another category of debt called priority debt which is not normally released, meaning bankruptcy will not pay off them. Priority debt includes child support payments, child support payments, tax obligations, and student loans. If most of your debt has not been paid off, filing for bankruptcy is can not be always a new start and may not be the best solution for you. Always think and consider reasonable alternatives,
Calculate your cost
There are certain fees associated with filing for bankruptcy in Chapter 7. If you hire a bankruptcy attorney near me, you will have to pay cash, eg. Registration fees as well as credit advice fees and legal fees. There are also non-monetary costs to consider.
Is this a good time to file bankruptcy?
If you file a case in Chapter 7 that has been successfully resolved, you will not be able to file another Chapter 7 and will receive an 8-year waiver. While it is not possible to predict future financial difficulties, you should still consider your current level of debt when trying to decide whether it is appropriate to file a lawsuit.
It is also important to check if there are significant financial burdens, e.g. medical problems that may prevent you from working in the future. Remember that while bankruptcy can be an important tool, the best-case scenario is debt relief to solve your financial problems and prepare you for success.
While there is no legal minimum bankruptcy filing number under Chapter 7, there are still many important factors to consider in determining whether bankruptcy is the best solution for you. BLC Law Center is the best option for you to choose a bankruptcy attorney near me. We are among the best which can guide you to file bankruptcy.