What should I know about Chapter 7 bankruptcy?

When an individual finds themselves in a dire financial situation, they may be unsure of where to turn or what they can do to get out of debt. In some cases, filing bankruptcy may be the best option and can allow you to get a fresh start with your finances and be debt free. It is important that if you are considering bankruptcy, you consult with an experienced bankruptcy attorney who can walk you through each step of the way and help you find success in your future.

One form of bankruptcy that you may want to consider is Chapter 7 bankruptcy, which is meant for individuals who fall into the eligibility criteria. Chapter 7 bankruptcies generally result in the liquidation of your assets so you can repay creditors. Not all of your property is sold. Some property is exempt from liquidation, including (in some cases) your vehicle, clothing, furniture, etc. In order to determine whether you are financially eligible to file Chapter 7, you will have to take a “means test,” which assesses your level of income. If your income is too high, you may have to file for Chapter 11 bankruptcy, which is more of a repayment plan than it is a liquidation. If it is determined that you are eligible for Chapter 7 bankruptcy, you will also have to take a credit counseling course and file a certificate of completion of this course.

If you are in a bleak financial situation, it is important that you consult with an experienced bankruptcy attorney who can assess your situation and determine what options may be best for you.

The Radol Law Firm is proud to serve the people of New Jersey in their divorce and family law, elder law, estate planning, and bankruptcy matters. Contact our firm today to schedule a consultation.