4 Things To Know About Filing For Chapter 7 Bankruptcy

If you're dealing with financial problems and you're unable to pay your bills, you may want to consider filing for Chapter 7 bankruptcy. This is a legal status that must be approved  by the court within your jurisdiction to make it valid. The good news for you is that your debt will be repaid, and you will have a larger peace of mind. By knowing specific things about filing for Chapter 7 bankruptcy law beforehand, this can be helpful to you.

Where you live matters

When it comes to filing for bankruptcy, there are varying requirements for each state. For instance, you may need to have a higher debt to income ratio in some states compared to others.

The income and debt rules may vary, and it could be possible to be eligible for this status in one state, but not another. Be sure to learn the specific requirements in your area. Additionally, if you intend to rely on an attorney these rates can vary a lot, as well.

Maintaining assets

Some people are under the misconception that all assets will be taken away on the day bankruptcy is completed. This is not true, and the chances are significant that you may be able to maintain all of your assets.

This may include some of the most costly assets, such as cars and homes, as well.

Qualify for low legal costs

It's possible that you may be able to retain the services of an attorney for a reduced rate or even for pro bono in some states. You will need to check with your local governing official to determine what the guidelines and requirements are for where you live to do so.

Attending a credit counseling class

It will be necessary for you to attend a credit counseling class that is designed to help you learn better ways to use your money. One of the best ways to avoid having any debt is by spending less. For instance, in N.C., you're required to take this course at least six months before filing for this legal status. The time required to enroll in this class before filing bankruptcy may vary per state.

The benefits of completing a Chapter 7 bankruptcy will include having an increased peace of mind that your debts will be paid. This is guaranteed to take a great deal of stress off of you and make life easier. Be sure to rely on the expertise that is offered by a bankruptcy attorney is this is necessary.