The Basics of Chapter 7 Bankruptcy
Atlanta Chapter 7 Bankruptcy Attorney
Are you considering filing for Chapter 7 bankruptcy? More and more people are considering bankruptcy as an option because of the struggling economy. Hard-working families are suddenly finding it difficult to keep up with bills and one emergency could be enough to overwhelm them in debt. At the Stadler Law Group, LLC, we understand that the bankruptcy process can be confusing and that you will probably have many questions on your mind. We also understand that bankruptcy is a tool that people can use to allow them to have a clean slate. Getting a basic overview of Chapter 7 bankruptcy could be helpful when trying to determine whether this is the best option for you as well as learning how to get started. Chapter 7 bankruptcy is also known as liquidation bankruptcy. It basically works by selling, or liquidizing, your assets and using the proceeds to repay your debts.
Determining Eligibility for Chapter 7 Bankruptcy
How can you know if you are eligible for this type of bankruptcy? Known as the means test, this is a formula which is used to determine whether or not someone is eligible for Chapter 7 bankruptcy. It is a common misconception that you have to be completely broke in order to be eligible for this type of bankruptcy. In fact, you could have a relatively well-paying job and still be eligible for this form of debt relief. The first stage of the means test examines your income as compared to the median income of others in your state with the same size household. If your income is below the median in your state, you will automatically be eligible for Chapter 7 bankruptcy and you will not even need to complete the test. If your income is above average, you may still qualify by continuing to take the test.
The next stages of the means test are much more complex. Your disposable income will be considered in order to determine if you are able to repay the debts on your own. There are certain monthly expenses which are allowable in the means test, and any income on top of this is labeled disposable income. There is a cut off limit for how much disposable income you can have and still file for Chapter 7 bankruptcy. Since these numbers will differ depending on what state you live in as well as how big your household is, it is important to allow a bankruptcy attorney to look into your case to help you get an idea of whether or not you qualify. If you do not pass the means test,
Chapter 13 bankruptcy could be a good option for you. There are also other forms of debt relief besides bankruptcy which you could avail of with the help of an attorney.
Talk to a bankruptcy lawyer from our office!
Before making any final decision, please contact a member of our team at the Stadler Law Group, LLC. We have over 20 years of experience on our side and offer free case evaluations. There will be many different things you will have to consider when it comes to filing for bankruptcy. You will need to understand the difference between secured debt and unsecured debt as well as be aware of what the type of debt you mostly have. We understand that bankruptcy is not the best option in every case and do not offer a cookie-cutter formula to our cases. Please do not hesitate to contact an Atlanta bankruptcy lawyer from our office today to learn how we could help!