Chapter 7 bankruptcy is a good option for people who are unable to get a hold on unsecured debt, such as credit card debt, medical expenses, and more. Under Chapter 7, you will be able to consolidate this debt into tidy monthly payments you can afford. At the end of the process, you will have a fresh slate from which to move forward. The Law Office of Danielle J. Eliot, P.C. is experienced in this area of the law and eager to provide the guidance you need.
Chapter 7 is often referred to as a liquidation or straight bankruptcy. When you file, you will be appointed a Bankruptcy Trustee who will assess your assets and determine if you have any available assets to liquidate in order to pay creditors. If there are no assets to liquidate, your unsecured debt, in most cases, can be eliminated.
In order to file for Chapter 7 bankruptcy, you cannot have filed a Chapter 7 in the last 8 years. Additionally, you will have to pass the Georgia means test. This simply means that you will have to provide evidence that your household income is not higher than the Georgia income median. Even if your income is higher than the Georgia Median income you may still qualify if your expenses are higher than your income. Some Debtors are not required to fill out the Means Test; disabled veterans who acquired the majority of their debt while serving active duty are exempt from the means test and may file at any time, as well as individuals with majority of their debt being non-consumer are likely exempt from the means test.
Many clients who qualify for Chapter 7 bankruptcy fear that they will lose their house, vehicles, or other necessary and valuable assets. Fortunately, many people are allowed to keep possession of some of these assets as long as they sign a voluntary Reaffirmation Agreement stating that they can and will continue to make the monthly payments. You can select which assets to reaffirm and let the others go into the bankruptcy to be discharged.