The Chapter 7 Bankruptcy Decision

Is Chapter 7 Bankruptcy Right for You?

Deciding to file bankruptcy is a major decision. As with any important decision, you should know the facts and weigh your options.

If you’re serious about taking control of your financial situation, filing Chapter 7 bankruptcy may be a good way to take back control of your financial life.

At Chapter7.Me, we can connect you with a local bankruptcy lawyer who can explain Chapter 7 bankruptcy in more detail as it may be applied to your situation.

To let us connect you to a local bankruptcy lawyer, fill out our free bankruptcy evaluation form or call 1 (888) 632-0501.

Are You a Good Candidate to File Chapter 7 Bankruptcy?

While there is more work nowadays to determine whether you qualify for Chapter 7 bankruptcy, this personal bankruptcy protection may be a good option for you if you:

• are overwhelmed by debt and having a hard time making ends meet;
• have little “extra” spending money;
• have little property, except for the basics (like clothing and furniture) and property needed for your job (like a car for transportation or work tools);
• you rent an apartment or home; and/or
• you have little equity in your home.

You should know that there are some exceptions to who can qualify to file Chapter 7 bankruptcy. A bankruptcy lawyer may help you determine if Chapter 7 is the right choice.

What About the New Bankruptcy Law? Can I Still File Chapter 7 Bankruptcy?

You may have heard that there have been recent changes to the U.S. Bankruptcy Code. Some people claim that the new bankruptcy law has made it more difficult for people to file Chapter 7 bankruptcy.

This is not necessarily true. In fact, Chapter 7 filings for the 12-month period ending June 30, 2008 were up nearly 37 percent from the year period ending June 30, 2007, according to the Federal Judiciary.

The main change in the bankruptcy law is that the law now requires every Chapter 7 bankruptcy filer to submit to a Chapter 7 bankruptcy means test, which is less of a test and more of a formula that determines if you qualify to file Chapter 7 bankruptcy.

The purpose of the Chapter 7 means test is to make sure only those most in need are allowed to file Chapter 7 bankruptcy.

You will “pass” the test if your income level is below the median income level in your state. If your income is higher, don’t panic—you may still be able to file Chapter 7 if the court determines you don’t have very much monthly “disposable” income.

Will Filing Chapter 7 Bankruptcy Affect Your Credit?

Chapter 7 bankruptcy can offer the chance to reclaim control and stop creditor harassment. It is designed to clear most unsecured debt and may provide you with a fresh start.

It’s important to consider that filing bankruptcy stays on your record for ten years. During that ten-year period, it may negatively affect your credit. But, oftentimes, when your overwhelming debt is removed from your record through a Chapter 7 bankruptcy filing, the result may be a positive credit boost.

When you think about it, if you’re considering filing bankruptcy, your credit probably wasn’t that great to start out with. A Chapter 7 bankruptcy could help clean your slate and may give you the opportunity to rebuild your credit.

Chapter 7 Bankruptcy: Making An Informed Decision

If you’re considering filing Chapter 7 bankruptcy but are still not sure if it’s the right decision for you, it may be time to speak to a local Chapter 7 bankruptcy lawyer who can be a resource for advice.

Don’t wait to get set on the path to financial freedom. Chapter7.Me is sponsored by an extensive network of participating bankruptcy attorneys ready to answer your questions.

To connect to a bankruptcy lawyer in your area, fill out our free bankruptcy evaluation form or call 1 (888) 632-0501.

The above synopsis of bankruptcy laws is by no means all inclusive and is not intended to provide legal advice. These laws may have changed since our last update and there may additional laws that apply in your situation. For the latest information on these bankruptcy laws, please contact a bankruptcy lawyer in your area.