4 Things You Should Know About Chapter 7 Bankruptcy

Law Blog

If you are struggling to pay off your debt, you may want to consider filing for Chapter 7 bankruptcy. This may allow you to have your debts discharged if you qualify for this status. There are certain things you should be aware of if you are contemplating filing for this legal status.

Forms to complete

You will be required to fill out a number of forms that will determine if you are eligible or not.

Listed below is the information you will need to provide:

1. How much money you make is required when filing for bankruptcy. You will need to provide some form of proof for this amount, such as a W-2 or recent pay stub.

2.  What is the current amount of your living expenses? This may include your rent or mortgage payments, food and clothing monthly that allow you to live.

3.  What is the amount of your debt? You should be prepared to provide a list of your debt to each creditor you owe and these must all be listed individually by you.

You must also pass the means test that will show your income is too low to pay your debt.

Costs of filing

The court and administrative fees are relatively low. This amount as of June 1, 2014 is $335. However, if you enlist the assistance of an attorney when filing for a Chapter 7 bankruptcy, you can expect to pay for the legal services.

Credit counseling

You will be required to complete a course in credit counseling before you can file for this legal status. You must provide a certificate of completion within 180 days of filing bankruptcy.

This should help prepare you to for better financial management later in life and is a necessary requirement by the court system where you are filing.

Debt discharged

The most common type of debt that is wiped out by bankruptcy is unsecured debt. This is debt that doesn't have collateral to back it up. Credit card debt, payday loans and hospital bills are the types of debt you can expect to be discharged by filing for this legal status.

Finally, getting rid of debt that you simply can't pay can allow you to have the peace of mind you need for your well-being. Be sure to consider the many advantages of allowing a bankruptcy attorney (such as one from Wagner Law Office PC) guide you through this process for the fastest results and success.


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Business Law Basics: What Small Business Owners Need to Know

When I started my first small business, I had no idea how much I really didn’t know. I was fully prepared to deal with customers, sell product and even handle complaints and returns. What I wasn’t aware of was that there is so much more to it. I was lacking the legal expertise to protect the company and myself. I wanted others to benefit from my experience, mistakes and lessons learned, so I started this blog. From employment law to the legal business contracts you’ll have to sign when you form partnerships, business law is complex. I hope that the information here will help you to be better prepared when you start your business so that you’ll know when you need to call an attorney and when you can handle things yourself.