The U.S. economy has been notoriously unstable during the past several years. As a result, an overwhelming number of American citizens continue to find themselves deep in the throes of financial difficulties. In particular, more and more people are struggling with paying off their debts and other similar obligations. the total amount of consumer debt in the country is more than $11 trillion. This amount includes student loans, credit cards, mortgages, and auto loans that are still waiting to be paid for.
Getting out of debt can be a challenging course. For some individuals, making ends meet is already a struggle on its own. What solution is available for those who aren’t even making enough to cover their basic necessities? In situations like these, filing for Chapter 7 bankruptcy can provide the best possible solution.
According to the Bradford Law Offices, Chapter 7 bankruptcy allows debtors the opportunity to liquidate or sell their assets in order to pay back creditors. It is one of the most sought after solutions for financial difficulties because it can offer several different advantages. Filing for a Chapter 7 bankruptcy can lead to debt forgiveness, allowing individuals to discharge much of their debts in a short period of time. It also allows an individual relief from creditor harassment. Debtors will no longer have to deal with the stress that comes from constant phone calls from creditors or the threat of having property repossessed. Chapter 7 bankruptcy also allows an individual to properly rebuild their credit score.
With the help of a skilled legal representative, the process of filing for Chapter 7 bankruptcy can be easy and manageable. An applicant will be granted by the court legal bankruptcy status as long as they meet a specific set of criteria. The most important factor is decided by the means test, which will help determine if the applicant’s income falls within a specific bracket. Chapter 7 bankruptcy is meant to provide aid for individuals with the most pressing financial needs. Aside from the means test, the court will also check for a debtor’s disposable income and the amount of their typical expenses.