Yes, you can file bankruptcy; however, whether filing bankruptcy is your best option is another question. When the bankruptcy laws changed in 2005, many people heard or read information that was not accurate about filing bankruptcy. Based on that information, many individuals believed that they could not file bankruptcy because of the new bankruptcy laws. While the new bankruptcy laws did change the way people file bankruptcy, it certainly did not mean that people who needed debt relief could not file bankruptcy.
Determining the Chapter to File Bankruptcy
As part of the revisions to the Bankruptcy Code, Congress introduced the Means Test. The Means Test is used to determine if a debtor’s Chapter 7 filing is presumed to be an abuse of the Bankruptcy Code. If the debtor’s gross monthly income over five years, net of statutorily allowed expenses, is more than $10,950 or 25% of the debtor’s non-priority unsecured debt, the Chapter 7 case will be dismissed or converted to a Chapter 13 case. Some people will not qualify for a Chapter 7 case due to their income. In most of those cases, they will be able to file a Chapter 13 case to solve their debt problems.
In addition to reviewing the income requirements, your bankruptcy attorney will also review your debts and your assets. In some cases, even though a debtor may qualify to file a Chapter 7 case, it may be in his or her best interest to file a Chapter 13 bankruptcy to stop a foreclosure, prevent a garnishment or protect assets from the court and creditors. During your meeting with the attorney, he will review your entire financial situation to determine what chapter of bankruptcy you should file to give you the best possible resolution to your financial problems.
There are several bankruptcy alternatives that may resolve some of your debt problems but very few of those alternatives resolve all of your debt problems the way bankruptcy does. When you file bankruptcy, you discharge most, if not all, of your debts while protection your assets from creditors. Bankruptcy gives you a fresh start without the burden of debt to recover from a financial crisis so that you can rebuild your finances. You can file bankruptcy; however, your current financial situation will simply dictate which chapter of bankruptcy you are eligible to file and which chapter of bankruptcy will benefit you the most.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
If you are experiencing financial problems due to debt, contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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