Who is a Good Candidate for Chapter 7?
When you’re facing overwhelming debt, the weight can be crushing. Constant phone calls from bill collectors, new bills in the mail, collections notices and even fears of repossession can all combine to leave you feeling anxious and stressed. If bills are keeping you awake at night and making you dread each new day, First America Law can help. Call 1-800-695-7674 for a free evaluation. You might be a candidate for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is one of the fastest ways to free yourself from excessive debt. In fact, you might be completely debt free in just three to six months.
Are You Eligible for Chapter 7 Bankruptcy?
Most people are eligible for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy might be the best option for you if:
1. You have more debt than income.
In order to qualify for Chapter 7 bankruptcy, you’ll need to pass a means test. This test determines how your income compares to the median income. If yours is below the median income for similarly sized households, then you’ll have passed and will be able to file your petition.
2. You have few assets.
People who file Chapter 7 can only have a limited amount of assets, including real estate, vehicles, and household items. The assets a person can have vary from state to state.
3. You have a lot of unsecured debt.
Unsecured debts such as medical debt, credit cards and some personal loans are discharged through Chapter 7 bankruptcy. This means that in a few months, you might be debt-free.
4. Your credit score is low.
Bankruptcy can lower your credit score up to 200 points and can remain on your record for up to seven to 10 years. If your credit score is already lower than average, then this might not affect you as much as it would affect someone with good credit. However, regardless of your credit score, you can begin to rebuild your credit as soon as your debts have been discharged.
Fast, Effective Debt Relief
Unlike Chapter 13, which can take up to five years, Chapter 7 bankruptcy can give you significant debt relief in three to six months. Call 1-800-695-7674 to speak to one of our skilled bankruptcy representatives, and you can be on your way to financial freedom sooner than you dreamed.