Need to Apply for Chapter 7 Bankruptcy? Then You’re Not Alone
The US Census Bureau has determined that the average income, for the past five years, for American households leveled at just over $46,000. But for millions of families across the country, they fall not just below the median income, but the poverty line altogether. Statistics indicate that almost 39 million families (or 13 to 17% of the population) live below the poverty line. Astonishingly, more than 40% of the population will be considered below the poverty line in the span of their lifetime.
So what does this have to do with debt and Chapter 7 bankruptcy?
Poverty is bad enough, but when you’re also suffering from too much debt, it can seem almost impossible to not only improve your credit, but your financial situation in general. If you’re living paycheck to paycheck, prioritizing paying off your debts is often an impossible choice, as your finances are obligated to paying for your necessities. Yet there is hope out there for many families who are struggling to do both at the same time.
Filing for a Chapter 7 bankruptcy is a way to give families the chance they need to start over again financially, thus relieving themselves of an enormous debt burden. Filing for a Chapter 7 bankruptcy allows you to eliminate your unsecured debts, such as credit card bills , medical bills and other loan obligations. Additionally, a Chapter 7 bankruptcy allows you to keep hold of your home and your car (up to a certain federal exemption amount), so you won’t have to sell your residence just to pay off your debts.
So how do you know if you need to file for a Chapter 7 bankruptcy?
Simple: if you’ve gathered up your debts and determined that there’s no way you’ll be able to pay off your debts in seven to ten years, then you may want to consider filing for bankruptcy.
Why the seven to ten year figure?
Simple: that’s how long a Chapter 7 bankruptcy will remain on your credit score – so if your debts last beyond that, then it’s well worth it to make an appointment with your local bankruptcy attorney. If you’ve been living off of credit cards or continually turn to payday loans just to make ends meet, then it’s time to break the cycle of poverty and too much debt. Contact a local bankruptcy attorney today to take a stand against the mountain of debt you’ve been battling for so long. After all, don’t you and your family deserve the chance to start your finances over again.