Who Should File Chapter 7

A Chapter 7 bankruptcy enables debtors who are overwhelmed by unmanageable debt to get a new start. You must pass a means test to determine your eligibility for this procedure. During this process, a court-appointed official will evaluate your total income and expenses. The official will determine if you have adequate disposable income with which to make payments to creditors. If you meet the criteria to file under the provisions of Chapter 7, you can discharge certain debts, such as credit cards, personal loans and medical bills. Other debts are ineligible for discharge. This category includes student loans, back taxes, alimony, child support and penal fees. Even though Chapter 7 is deemed a liquidation process, you may be able to keep your car, household furnishings and work-related tools.

A Chapter 7 bankruptcy is not suitable for every individual. You must evaluate your debt burden if you are considering whether you should file for this type of relief. If the majority of your debt is non-dischargeable, you should consider other options. You can consolidate your debt, establish payment plans with your creditors or file for bankruptcy under the provisions of Chapter 13.

If you are considering filing for bankruptcy, you should seek legal advice from an experienced lawyer. A professional attorney can thoroughly analyze your financial situation, determine your eligibility for relief and explain your options.

We are bankruptcy specialists in Ft Collins Colorado that can help you!