Tag Archives: Chapter7
Last week, we put out a short list of some of the pros and cons of filing Chapter 7 bankruptcy. Filing bankruptcy is a huge decision and one that will have several financial implications in the years following. But bankruptcy is also a valuable tool for people who are drowning in debts and have no way out. Here are some more of the benefits of Chapter 7 bankruptcy, as well as some of the downsides. Pros and Cons of Chapter 7 Con: It can be almost impossible for someone who files for bankruptcy to get a mortgage, if he or she doesn’t already have one. Pro: There are certain lenders who will loan money to people deemed “bad risks,” so it is not impossible. Difficult? Yes. But it can be done. Con: You cannot discharge things like child support, (most) student debt, recent back taxes or spousal support in bankruptcy….
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Deciding to file for Chapter 7 bankruptcy can be one of the most difficult financial decisions someone can make. What if filing is a mistake? Do you have any other options? Is bankruptcy really that helpful, or will it take your already spiraling finances into a deeper pit? What will people say about you if they find out you filed for bankruptcy? Chapter 7 bankruptcy can be a difficult thing to go through and the struggles can last for a long time. But there are some real positives to the process that can help you emerge stronger than before. Here is a list of some of the pros and cons of Chapter 7 bankruptcy. Pro: The process of filing takes only 3-6 months. If you do not file and it is the right choice for you, your debts can continue to pile up beyond that 3-6 months, so filing as…
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If you are considering Chapter 7 bankruptcy, the first thing you need to know is if you are eligible. You do this through the Chapter 7 bankruptcy means test. The test determines whether your income is low enough to file for Chapter 7. You don’t have to be very low income to take advantage of the benefits of Chapter 7 – if you make high income but also have a lot of expenses, you may still qualify. The Means Test The means test deducts specific monthly expenses from your “current monthly income,” which is determined by your average income over six months prior to filing. This brings you to your disposable income. The lower your disposable income, the more likely you will be able to file for Chapter 7. Step one is to determine whether your current monthly income is less than the median income for a household of your…
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