2 Important Questions That People Ask About Chapter 7 Bankruptcies

You already know that a Chapter 7 Valdosta makes it possible to discharge debt and get a fresh start. What you may not know is that not everyone is eligible for this type of bankruptcy protection. Here are two of the more common questions that people have about this form of bankruptcy. Your legal counsel is ready to discuss these in more detail as well as answer any other questions that come to mind.

What is a Means Test?

A means test is essentially an evaluation to determine if you are eligible for bankruptcy protection. It’s applied to anyone seeking a Chapter 13 or a Chapter 7 Valdosta. The process is based on current monthly income and the total amount of permitted monthly expenses. If the amount of disposable income that remains is not sufficient to pay what the court considers a minimum amount to each creditor, it’s possible to be considered for a Chapter 7. If not, your lawyer will determine if your current situation would merit filing a petition for a Chapter 13 bankruptcy.

Can All Debts Be Discharged Under a Chapter 7 Bankruptcy?

There are some types of debts that cannot be discharged under a Chapter 7. Student loans, child support and alimony payments, and debts related to the intentional injury of another person are some examples. In most cases, tax debt is also not eligible, although there is a narrow range of conditions that might make it possible to include them. Your bankruptcy lawyer in Valdosta can help you evaluate your debts and determine if all of them can be included in a Chapter 7 bankruptcy action. If not, a Chapter 13 might be best for you.

If you’re facing financial difficulties and nothing that you do seems to make an impact, it may be time to talk with a lawyer about filing for a Chapter 7 Valdosta. Assuming that you meet the court’s requirements, it’s possible to put this part of your life in the past and begin working toward a more prosperous future.

For more information visit Charles Farrell Jr. LLC.

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