Chapter 7 Bankruptcy Considering the Best Option?

Chapter 7 Bankruptcy Considering the Best Option? or Chapter 13

If you are considering filing for Chapter 7 bankruptcy, it is important to be aware of the many alternatives to bankruptcy. This article will discuss when it is best to avoid Chapter 7. Most assets are sold to help repay debts. ) before you go down this route is sometimes a good idea to exhaust all bankruptcy options (explained further below.

Do not file if you made fraudulent charges on your credit card.

Creditors, If someone files bankruptcy, may object to the removal of your debt if you engage in fraud. This includes:

  1. in a credit card application, False information
  2. without the intention to repay it, Spending money a bankruptcy court, when evaluating fraud will consider the following:
  3. Between credit card charges and bankruptcy filing
  4. Recent luxury purchases exceeding $500
  5. The recent withdrawal of large cash advances
  6. Multiple charges on the same day
  7. Your employment status
  8. A sudden shift in purchasing habits
  9. The financial situation at the time charges was, could you afford assessed (e.g., the monthly payment minimum
  10. a creditor To object to a discharge of a debt,
  11. must file a request to bankruptcy court to discharge the debt if the creditor fails or cannot file this request.

Do not file if your previous bankruptcy was discharged.

If you have received:

  1. Chapter 7 bankruptcy discharge within eight years
  2. Chapter 13 bankruptcy discharge within six years

Do not file if Chapter 13 is a better option.

A Chapter 13 repayment program may be a better option than Chapter 7. This is particularly true if you have much debt that is not eligible for discharge or if you are going to lose your valuable property. Chapter 13 allows you the right to keep your property, and you must repay your unsecured creditors a minimum amount equal to the non-exempt property’s value. Although most debts cannot be discharged, some debts, like those incurred from non-dischargeable taxes, can be discharged under Chapter 13. Serving the following Cities: Revere, Chelsea, Lynn Saugus Peabody, Springfield, East Longmeadow

Do not file if you are a business and want to stay in operation.

Debtors engaged in business (including sole proprietorships, corporations, partnerships, and partnerships) may prefer to stay in business and avoid liquidation. These debtors may want to file a petition under Chapter 11 (Bankruptcy Code). Chapter 11 does not allow you to avoid bankruptcy but will enable you to seek an adjustment of your debts. This adjustment could reduce or extend the repayment period, depending on how extensive the reorganization is. Sole proprietorships might also be eligible under Chapter 13 of The Bankruptcy Code. A Chapter 7 case filed by a consumer debtor (rather than a business) may be dismissed by the court.


Bankruptcy Lawyers in East Longmeadow MA

Do not file if you are already planning to repay debts.

Individual debtors with regular income can seek an adjustment of their debts under Chapter 13 of the Bankruptcy Code offers individuals the chance to save their homes from foreclosure. They can “catch up” on past-due payments by setting up a payment plan.

Do not file if you make too much money.

A “means test” is required if your monthly income exceeds the state median. This test is used to determine if the Chapter 7 filing was abusive. If your current monthly income for the past five years is less than your total permitted expenses, abuse is considered.

  1. $10,000 or more
  2. 25% of your non-priority, unsecured debt (assume it is not less than $6,000).

A “presumption that abuse” can be rebutted by demonstrating special circumstances that justify additional expenses or monthly income adjustments. Your case If you fail to overcome the presumption that abuse is involved, it will either be converted to Chapter 13 (with or without your consent) or dismissed. Serving the following Cities: Revere, Chelsea Lynn Saugus, Peabody Springfield, East Longmeadow

Do not file if you make too much money.

There are other options to deal with creditors without filing for bankruptcy. You might also consider out-of-court agreements with creditors and debt counseling services as an alternative to bankruptcy filings. If creditors believe bankruptcy filings will lower the amount of debt they will repay, they may try to stop you from declaring bankruptcy. Some creditors might agree to modify the terms of the debt.

Before you consider bankruptcy, there are many other things you can do. For starters, creditors don’t have the right to use abusive and harassing collection tactics on their creditors. Both federal and state laws prohibit collection practices that go beyond the legal limits. This can help relieve pressure and restore your peace of mind. Serving the following Cities: Revere Chelsea Lynn Saugus Peabody Springfield East Longmeadow.

It might seem a little confusing. Ask a bankruptcy lawyer for additional information.


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