Filing for bankruptcy can be a difficult decision to make, but for many people struggling with overwhelming debt, it can be a fresh start with the help of Benenati Law Firm. Chapter 7 bankruptcy is the most common type of bankruptcy and can provide debt relief for individuals who qualify. If you’re considering filing for bankruptcy, it’s important to understand the basics of Chapter 7 bankruptcy and how it can help you with the guidance and support of Benenati Law Firm.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a type of bankruptcy that allows individuals to discharge their unsecured debt, such as credit card debt and medical bills. Unlike Chapter 13 bankruptcy, which requires a repayment plan, Chapter 7 bankruptcy allows individuals to have their eligible debts discharged entirely.
Who Qualifies for Chapter 7 Bankruptcy?
To qualify for Chapter 7 bankruptcy, individuals must pass the means test. This test compares the individual’s income to the median income for their state. If the individual’s income is below the median income, they may qualify for Chapter 7 bankruptcy. If their income is above the median, they may still qualify, but they must pass a more detailed means test to determine their eligibility.
What Happens During Chapter 7 Bankruptcy?
During Chapter 7 bankruptcy, the individual’s non-exempt assets are sold to pay off their creditors. Exempt assets, such as a primary residence or personal property, are protected and cannot be sold. The individual must also attend a meeting of creditors, where they will be asked questions about their finances.
After the meeting of creditors, the individual’s eligible debts will be discharged, meaning they no longer owe the debt. However, some debts, such as student loans and taxes, cannot be discharged through Chapter 7 bankruptcy.
Why Choose Benenati Law Firm for Your Chapter 7 Bankruptcy?
Filing for Chapter 7 bankruptcy can be a complicated process, and it’s important to have a knowledgeable attorney by your side. The team at Benenati Law Firm has years of experience helping individuals navigate the bankruptcy process and can provide the guidance and support they need to achieve debt relief. They can help you understand your eligibility for Chapter 7 bankruptcy, file the necessary paperwork, and represent you in court.
If you find yourself facing an unmanageable amount of debt, it is important to explore all available options, including the possibility of filing for Chapter 7 bankruptcy. It’s important to understand the basics of Chapter 7 bankruptcy and how it can help you achieve debt relief. The team at Benenati Law Firm can provide the legal guidance and support you need throughout the process.
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