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Chapter 7 Bankruptcy  Lawyer

There are two main types of consumer bankruptcies, Chapter 7 and Chapter 13. When a person files for Chapter 13, the debts they owe are reorganized and they enter into a repayment plan they can afford in order to work down that debt.

When a person files a Chapter 7 bankruptcy, there is no repayment plan since most – if not all – of the person’s debt is discharged.

A bankruptcy lawyer can help you determine which type of bankruptcy is best for your situation.

Chapter 7 Is Debt Relief 

Chapter 7 bankruptcy is usually the best choice for people who do not really have assets that they would lose, such as real estate, boats, etc., in the filing.

Under Chapter 7, most of your debts will be discharged. If you have a vehicle loan, you will be able to get out of the loan but will not be able to keep the vehicle.

Not all debts can be discharged under Chapter 7. You will still be responsible for tax debt and penalties, student loan debt, and child support debt. Your creditors can argue to the court that you should be obligated to repay the debt, however, this is where your Chapter 7 bankruptcy lawyer can step in and make sure your rights are protected.

You Have to Qualify for Chapter 7 Relief

When you file Chapter 7, you are required to disclose all of your financial information to the court. There are certain requirements you must meet in order to qualify for Chapter 7. This is referred to as the means test. Every state has its own means test standards. Generally, there are income guidelines and asset rules. This too is something your Chapter 7 bankruptcy lawyer can help you will.

You may also have to attend credit counseling or bankruptcy classes before the debts can be discharged.

Something important to keep in mind is that Chapter 7 may alleviate your liability to pay off the debt, but it doesn’t discharge the debt from joint account holders. If a husband files for bankruptcy under Chapter 7, but his wife doesn’t, his wife will still be liable for any debts in her name even if the husband isn’t responsible. This is why many couples will file jointly.

Bankruptcy Isn’t Free

Filing for Chapter 7 bankruptcy does require court and administrative fees. You should consider hiring a lawyer to help you through the process to make the most of your bankruptcy. The law is complex, and you want to make sure that you get through bankruptcy to meet your goals.

Contact a Bankruptcy Law Firm Today

If you are considering filing for bankruptcy, do not file without obtaining legal advice. Call an experienced attorney, like a chapter 7 bankruptcy lawyer from a law firm like Therman Law Offices, LTD.