3 Chapter 7 Basics You Should Know
An uphill battle against debt can overwhelm a debtor, leaving them feeling confused and desperate for help. When debt cannot be managed and only grows larger and larger each month, a debtor may want to consider filing for bankruptcy. Chapter 7 bankruptcy protection is available for many debtors who do not have the financial means to satisfy the repayment of their debts any longer.
If you have reached a point where you cannot handle your debt obligations and need a solution, we may be able to help. To learn more about your legal options as a debtor, contact Florida bankruptcy lawyer Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
Determining Whether Chapter 7 is Right for You
Each chapter of the United States Bankruptcy Code has different provisions and is intended to resolve a distinctly separate debt situation. These are some concerns that pertain to Chapter 7.
#1: Chapter 7 Bankruptcy Requires You to Qualify
The Bankruptcy Abuse Prevention and Consumer Protection Act required every debtor to go through credit counseling before filing for Chapter 7 bankruptcy. Additionally, the BAPCPA requirements state that a debtor needs to qualify for Chapter 7 protection. According to this law, a debtor needs to pass what is known as the means test, which compares their income against the average for the state, measured against the debtor’s liabilities.
#2: Chapter 7 Bankruptcy May Involve Losing Property to Eliminate Debts
Chapter 7 bankruptcy proceedings are sometimes referred to as liquidation bankruptcy. When a debtor files for this form of bankruptcy, they might be required to surrender or sale some of their assets and property in order to satisfy debts. In many cases, however, this is unnecessary.
#3: Chapter 7 Bankruptcy Is Not Simple
There are parts of bankruptcy that may seem relatively simple. However, many do-it-yourself debtors who file bankruptcy through computer programs often find themselves without sufficient legal training to deal with any problems with creditors or bankruptcy trustees. A legal advisor can help inside and outside the court, dealing with many of these serious issues.
If you are struggling to deal with your debts and need legal assistance, we can work with you to find a debt solution. For a free consultation regarding your rights as a debtor, contact Florida Chapter 7 attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675.