Five Facts About Chapter 7 Bankruptcy You Might Not Know

Five Facts About Chapter 7 Bankruptcy You Might Not Know

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Updated 2/4/21

Are you an individual who is unable to pay your debts? Has your company or business been unable to cover its debts? Bankruptcy law definition refers to a legal process from a business or individual who cannot pay their debts and is looking for the debts to be reorganized or discharged by the court.

Several factors determine the bankruptcy maximum income. What affects the bankruptcy income limits chapter 7? The state’s income standards define the bankruptcy results on the maximum payment.

To file bankruptcy, you may need a chapter 7 bankruptcy attorney. It is necessary to hire a lawyer to help you through the legal process. To file bankruptcy, one fills a form in which the information given is used to determine whether you have qualified to file bankruptcy.

In case you do not qualify in the first form, you will need to fill another form that serves as an exemption statement.

What information is required in the bankruptcy form? You will need to fill in the information of your case, note down your marital status, income information, and calculate the total annual income.

By doing this, you have provided information to be used to calculate the meaningful amount of money you can pay regarding your unsecured debts.

Many people see filing for bankruptcy as something that will never happen to them — but in reality, a bankruptcy can happen to anyone. In 2013 alone, more than 1 million people filed for bankruptcy.

If you are finding yourself unable to keep up with your monthly debt payments, you might need to file bankruptcy in order to start over with your finances and prevent yourself from getting into worse trouble with your financial status.

However, it’s essential that you do your research before making the choice to file a bankruptcy — and that research starts here.

Here are the five things everyone should know before filing a Chapter 7 bankruptcy:

1. Filing a bankruptcy isn’t free: To file a Chapter 7 bankruptcy, you’ll need $306 for the filing fee — and for a Chapter 13 bankruptcy, the fee is $281. Then you will need money to pay your Chapter 7 bankruptcy attorney, which can be thousands of dollars’ worth of legal fees. Before you file for bankruptcy, it’s important to know how much the benefits will outweigh the costs.

2. Help with filing bankruptcy is available if you need it: There is a huge amount of resources available to you on the Internet to learn about the process of filing bankruptcy. There are also many bankruptcy attorneys who will offer help filing bankruptcy at no cost for people with financial need.

3. You should never file bankruptcy without a lawyer: While you technically don’t need to hire an attorney when you file for bankruptcy, it would be a huge mistake not to seek legal help for your bankruptcy. Only a bankruptcy attorney will be able to show you how and when to file bankruptcy to ensure a successful filing with the courts.

4. Chapter 7 bankruptcy is a big decision: Filing a bankruptcy will stay on your credit report for 10 years, and can make it difficult to get approved for credit cards and loans in the future. That’s why you should really make sure if filing a bankruptcy is the right course of action for you to take.

5. A Chapter 7 bankruptcy can change your life: If you’re suffering under constant stress and creditor harassment, filing a Chapter 7 bankruptcy can help you start anew without all these stressors. Everyone makes mistakes — but you should be able to learn from your mistakes. This is what a Chapter 7 bankruptcy can help you do. References:

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