Bankruptcy can sometimes be complicated but it can be even more challenging when you don’t understand the process clearly due to myths, misconceptions or false information that isn’t true. Chapter 7 bankruptcy may help you get the fresh start you’re looking for but it also helps to get accurate details to help you make an informed decision so your financial situation has a positive outcome.
Many people who complete the bankruptcy process obtain credit quicker than most realize; giving consumers an advantage in rebuilding their credit sooner. If you are married, your spouse may not need to file a bankruptcy petition especially if one spouse has an overwhelming amount of debt. Obtaining a discharge of qualifying debt is usually granted within about six months. While some may opt to file on their own, it is often not recommended due to the complexity of the process. Working with an experience bankruptcy attorney often plays an important role in making sure procedures are being followed accordingly, which greatly increases chances of getting debt discharged successfully.
Chapter 7 bankruptcy is good option for those who have limited assets. A bankruptcy trustee may utilize qualifying assets to satisfy creditors but in most cases a discharge of debt left outstanding is granted by the court. If the majority of your debt includes medical bills , credit card debt or other unsecured debt, it’s likely you will qualify. A means test is used to help determine eligibility for Chapter 7 filing which includes reviewing household income and expenses. Certain types of debt may not qualify for discharge such as child support and certain tax debts . Chapter 7 offers a wide range of exemptions that allow many who file to keep personal property.