Law

All You Need to Know About Chapter 7 Bankruptcy

In New York and somehow landed in a bankrupt situation? Do not worry, bankruptcy chapter 7 lawyer in Kingston, NY, will ease your pain and suffering. Chapter 7 bankruptcy is the second chance you get to regain control over your finances. Keep reading to find out about the details of chapter 7 bankruptcy.

Way of working: Chapter 7 bankruptcy

It is impossible to wave off all your debts, but chapter 7 helps you wipe out a host of unsecured debts. The dischargeable debts that chapter 7 includes are collection agency amount, credit card balance (including overdue and late fees), medical bills, payday, and personal loans. Also, it includes automobile or mortgage loans that you no longer can pay, HOA fees (if you give away the house), Social Security overpayments, civil court judgments, and overpayment and loans on veteran’s assistance.

When it comes to the non-dischargeable debts under chapter 7, it includes student loans, alimony, child support, HOA fees (if you keep your house), unsecured debts intentionally unaccounted, tax liens, and personal injury debt, in case you were proven faulty.

Eligibility criteria of Chapter 7 bankruptcy

When it comes to filing a chapter 7 bankruptcy, you must fulfill the eligibility criteria. You must complete a debt counseling course with an approved agency no more than 180 days before filing. You must keep in mind that filing a chapter 7 bankruptcy within the previous eight years is impossible. Also, you should not have filed chapter 13 bankruptcy within the last six years. If your filing was denied, you must wait another 181 days before filing again. Also, the filer must undergo a test of financial security. Your monthly income for the previous six months should not exceed a household’s median income, or you must pass the mean test. The test will determine if you have sufficient disposable income to make partial payments. If you fail the mean test, you can still file for chapter 13 bankruptcy. Also, the court has the right to dismiss your case even after you can file your claim.

Summing Up

If you are facing bankruptcy, this time is hard for you. But there is still hope. Just look for a suitable bankruptcy lawyer and let them handle your case. Every dark cloud has a silver lining. Do not worry; get on your feet to get the work done.

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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