When individuals need help with their finances, they may be able to get help through bankruptcy proceedings. Through these processes, they can work toward building a more stable financial future. Bankruptcy proceedings should not always be avoided. They can be beneficial for individuals that are suffering due to tough financial circumstances. People can use the processes of Chapter 7 and Chapter 13 bankruptcy to fix their situation. To see which process is better for your situation, you can consult a bankruptcy attorney to find out. They can guide you through the right process.
How can Chapter 7 bankruptcy help me?
Chapter 7 bankruptcy is used by individuals to prepare for a better financial future and get their lives back on track. Before applying for this process, there are certain requirements that must be met previously. Individuals have to go through credit counseling and attend a debtor education course to prepare themselves for the process ahead of time. This can educate them on their finances and what they may face. In addition to these requirements, the individual must also pass a means test that compares their income to the median income in the United States. In order to be eligible to claim their individual bankruptcy, their income has to be below the median income in the country. However, there have been cases where the individual can be approved even if their income does not fulfill that usual standard.
Once the eligibility requirements have been met, a petition for bankruptcy must be filled out. In the petition, the individual will have to claim a list of all their debts, an account of their income, monthly living expenses and a list of assets. This is to provide a full financial disclosure and see how the situation is going to be handled. In order to know how to progress from here, the paperwork must be filled out honestly. Once the paperwork is completed, the automatic stay goes into effect immediately. This can prove to be one of the most useful tools. It bars creditors from contacting debtors in regards to their debts. Instead of facing constant harassment, individuals can focus on the bankruptcy process and bettering their situation. This can help to alleviate any added stress from creditors.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.