Chapter 7 bankruptcy, also called “straight bankruptcy,” is the most common type of bankruptcy proceeding because it allows you to discharge most debts, meaning that you are no longer responsible for paying them off. Filing for Chapter 7 bankruptcy is often the fastest way to get out from under a debt you can’t to pay. However not everyone is qualified to file a Chapter 7 case, nor is it the only kind of bankruptcy.
Information for Bankruptcy
When you meet with me, the first thing I will do is get a quick snapshot of your finances. What you own, what you do for income, how much is your income, what do you owe and most importantly, what do you hope for the future. Many times we lose sight of the forest of rite trees. You spend so much time worrying about bills that you forget what it is like to live. Learning your complete financial circumstances allows me to understand how your goals fit into your money.
What are your debts?
Chapter 7 bankruptcy can discharge credit cards, medical bills, and personal loans, while some taxes and other limited forms of debt are not. Secured debt, that is, loans where there is a lien on something you own, can also be discharged provided you are willing to give up that property or .
What is your income?
Next, I must check whether you meet the criteria for a Chapter 7 filing. In very general terms, anyone who makes less than the median income in their state will qualify; but individual circumstances can affect the calculations, up or down. This is a complex calculation that involves and average of six months of income and certain allowable expenses. Don’t try this one at home, kids, it is very difficult to do.
Filing for bankruptcy isn’t ideal for everyone—but under the right circumstances, it can save your financial life. Let me evaluate your situation and determine whether a Chapter 7 filing is right for you. Even if bankruptcy doesn’t make sense, there are other options that might fix the problem. Learn what they are and then, together we can determine what works for you.
With over 35 years of experience, Eugene S. Melchionne Attorney at Law is the leading bankruptcy lawyer in Waterbury, CT. My dedication to my clients earned me a seat on the board of the National Association of Consumer Bankruptcy Attorneys, and led me to giving bankruptcy seminars throughout the country. To contact me, call (203) 757-3437 or reach out online.