Filing chapter 7 bankruptcy is something that can provide you relief from you current debt load, and many times filing chapter 7 can give you a completely fresh start from your past debts. Chapter 7 bankruptcy is unlike chapter 13 bankruptcy because with a chapter 7 filing the individual is still eligible to have all of their debts eliminated, and thus does not have to worry about accounts not being discharged. Filing chapter 7 can therefore provide you with a tremendous amount of relief from all of your prior debts and it can often-times give you the ability to regain your financial footing and resume your life without having to deal with debt collectors and harassing phone calls.
Your eligibility for a chapter 7 filing will depend heavily on your current income, assets, and level of debt. The way the bankruptcy laws are written now an individual with a significant income and assets will still have to repay a significant portion of their debts if the bankruptcy court determines that the individual has the capacity to payback such debts. This is what happens with a chapter 13 filing, and if you want to declare chapter 7 to avoid having to payback some of your debts then it will depend on your evaluation upon taking what is called the chapter 7 means test.
The chapter 7 means test is a type of formula that takes into consideration your current level of debt, as well as your current income and assets. It is supposed to take into consideration all of these factors so that it can determine your capacity to payback some, or all of your debt, and if you fail the chapter 7 means test then you will only be able to file for chapter 13 bankruptcy, and not for chapter 7. Filing chapter 7 bankruptcy will give you the ability to discharge the majority of your debts, and as long as you pass the chapter 7 means test then you should have no problem getting the kind of debt relief you've been looking for.
Filing for chapter 7 bankruptcy is not that difficult, and if you are wondering how to file for chapter 7 then you must begin by filing a petition with the bankruptcy court that serves the area where you live. When you file this petition you are also going to have to submit a variety of other documents besides the actual petition, and these will include a listing of your assets and liabilities, all of your expenses and income, a complete accounting of all of your debts, and a final statement of you entire financial situation. Once you have provided all of these documents to the bankruptcy court a case trustee will be assigned to you and you will be scheduled for a number of meetings and court proceedings going forward.
Over the next year a meeting will take place between the court, the holders of your debt, and yourself to determine what exactly the plan is going forward. The court will make a ruling after this meeting, and it is pretty standard to have your debts discharged once you have completed the remainder of the bankruptcy court's other requirements. Filing chapter 7 is not that difficult and will take some time and thus patience. If you really want relief from you debts then you need to follow the correct process and hopefully by doing so you will then be given a favorable decision by the appropriate bankruptcy court and will thus be granted a chapter 7 discharge.
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