Chapter 7 Application: Essential Information to Know Before Starting the Process
Applying for chapter 7 is an effective and legally-acceptable way to erase the debts giving you sleepless nights. However, you have to know whether it's the right chapter for your situation before applying. Therefore, it is advisable to consult a lawyer to understand the benefits and risks of choosing it. It's best to choose this chapter if you have too many debts that you cannot pay back. Read on to learn more about the chapter 7 bankruptcy application process.
The Qualifications You Have to Meet
First, your monthly salary must be equal to or lower than the recommended amount to qualify for this chapter. However, the court will require documents showing the amount of money you have earned for the last six months and compare it with what is recorded in the law.
You may also qualify for chapter 7 if you're jobless or are self-employed and earn a salary almost equal to the minimum salary. Therefore, your lawyer will first evaluate your earnings to find out whether you meet this qualification. They will advise you on the other available options if you don't.
The Debts That the Bankruptcy Can Erase After a Successful Application
The biggest advantage of filing chapter 7 is that it will come into effect immediately after a successful application. If any creditor threatens to acquire your property to recover their debts, this chapter will stop them from doing so. Your legal adviser will guide you when applying to ensure that your application is successful. Bankruptcy can erase your accrued medical bills, personal loans, utility bills, credit card service fees, and debt collection agency fees.
The Property You Can Keep After Application
Luckily, you will keep some of your property even after filing for chapter 7. They include cars, money, furniture, and clothes. However, the belongings an applicant can keep will depend on their state laws. Therefore, consult your lawyer to know if you can accrue this benefit. They will review your state laws and advise you on whether to file for this chapter, depending on the assets you may lose. They also know the legal measures to take so that you can retain most of your assets.
A successful bankruptcy process starts by choosing the right chapter. Therefore, if you plan to file for a chapter 7, consider seeking advice from a bankruptcy lawyer. They will offer you the necessary information regarding this chapter, enabling you to make informed decisions.
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