Chapter 7 Bankruptcy

According to the Bradford Law Offices, PLLC, “If you are facing overwhelming financial difficulties and don’t know where to turn for help, you may need the assistance of a Chapter 7 bankruptcy attorney. Chapter 7 is one of the most commonly sought forms of bankruptcy because it provides individuals with a way to discharge, or completely eliminate, many of their existing debts. If you are suffering under the weight of unmanageable debt, Chapter 7 bankruptcy may be able to provide you with much-needed relief. However, pursuing this debt relief option can be complicated, so it is important that you secure professional assistance if you think that Chapter 7 may be right for you.”

Bankruptcy is one legal solution available to individuals and businesses with overwhelming debts. Besides helping them regain control of their finances, the bankruptcy law also ensures the immediate cessation of whatever form of harassment law firms and debt collectors use to force debtors to make payments – this starts as soon as a declaration of bankruptcy is filed in court. (Forms of harassment employed by law firms and debt collectors include e-mails, phone calls, letters, text messages, lawsuits and others).

Specifically, Chapter 7 bankruptcy is a liquidation bankruptcy method that is best for people who have properties, but whose salary or income does not go above the limit stipulated by the chapter. As the definition suggests, this law will require the liquidation of a few of your properties (you can choose specific properties that should not be sold, though). The selling or the liquidation of your properties is to be done by a court-appointed trustee who will also distribute the amount earned to your creditors. Debts to be paid are only those categorized as non-dischargeable, such as court fines, alimony and student loans. Medical bills, business and personal loans, and debts due to use of credit cards are called dischargeable debts, meaning, the court may free you from the obligation of still paying these.

To determine eligibility under Chapter 7, an applicant will have to take and pass the means test. This test is a way to determine if your income is low enough to qualify you to seek protection under this chapter.

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