Making the decision to file for bankruptcy is a difficult one, and it is made all the more hard when you realize you have to determine what type of case you are eligible to file. The two types of bankruptcy available to individual and joint consumer debtors are Chapter 7 and Chapter 13. In a Chapter 7 case you are able to discharge all of your unsecured debt. Unsecured debt is debt that is not tied to piece of collateral. The most common form of unsecured debt is credit card debt, and credit cards are what land most people in overwhelming debt. So, being able to wipe out credit card debt is a big incentive to file for bankruptcy. But, you do need to know if this type of case is right for you, and if it will meet your financial needs.
Here are four easy ways to tell if filing a Chapter 7 bankruptcy is right for you:
• If you are behind on your credit card payments, you will benefit from filing a Chapter 7 case.
• If you are not able to pay for necessary living expenses like gas and groceries without using a credit card, you should consider filing a Chapter 7 bankruptcy.
• If you are receiving calls about past due payments, Chapter 7 bankruptcy will give you the relief you need.
• If you are being sued or have judgments against you for collection, which have been reduced to a wage garnishment or are not far away from a garnishment being issued, Chapter 7 bankruptcy will stop those actions so you can keep your entire paycheck.
Holding on to as much of your take home pay as possible, and eliminating high interest rate debt so you can focus on other payments are two of the biggest benefits to filing a Chapter 7 bankruptcy case. However, there are certain requirements that have to be met before you will be allowed to file a Chapter 7 and one of those requirements is performance of a complex mathematical computation to demonstrate your need for Chapter 7. If you do not perform the test properly, or if the test shows you do not qualify for a Chapter 7 you will need to look how a Chapter 13 case can help you sort through your finances. We can do this for you, and will do it properly. Getting the answers you need right the first time is essential to the success of any financial problem, and that is especially true if you are filing bankruptcy. Let us put our experience to work for you!
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.