Understanding Chapter 7 Bankruptcy
There is little that's more stressful than having to deal with mounting bills that you simply cannot pay. Life's ups and downs can cause many upheavals to both our personal and financial lives. If calling creditors have begun to invade every part of your day, one solution can be to apply for Chapter 7 bankruptcy.
Often referred to as a liquidation bankruptcy, Chapter 7 allows the applicant to eliminate any unsecured debts, meaning those debts not having property listed as collateral. Unsecured debts include medical bills, most credit card obligations and other debts.
What Are The Benefits Of Filing Bankruptcy Under Chapter 7?
One of the best reasons to apply for Chapter 7 bankruptcy is that it can provide instant relief from a large amount of debt. Once filed, a Chapter 7 bankruptcy prevents creditors from contacting you or engaging in any collection activity without permission from a bankruptcy judge.
Another benefit of filing is that it stops further wage garnishments from occurring, as long as the garnishments are not for alimony or child support. Filing for bankruptcy can also benefit anyone who's driver's license has been suspended, as long as the reason for the suspension wasn't due to alcohol or drugs.
Qualifying for Chapter 7
Qualifying for Chapter 7 is done via something called The Means Test. The Means Test is based on the median income for your state. Those earning less per year than the median income for the size of your household will qualify to file without the need to pass The Means Test.
Bob Kalenda would like to ensure that you know about all of the benefits of bankruptcy so that you can make the best decision for you. All you have to is call Kalenda Law Office at 320.255.8840 and schedule your free consultation.
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