Is Chapter 7 Bankruptcy For Me?

Changes in the bankruptcy laws have left many to erroneously think that they can no longer declare bankruptcy. This is not true. A Chapter 7 bankruptcy can also be referred to as liquidation; although with most cases there is little if any actual liquidation involved. Chapter 7 is referred to as liquidation because all of your non-exempt assets are converted to cash to help pay back the debt owed. It is best to speak with a skilled Mississippi bankruptcy lawyer if you are unsure whether Chapter 7 is the best option for you. In general, Chapter 7 best suits persons:

•  with income at or below the state median level

•  unable to adequately meet bills and living expenses each month

•  having little or no assets besides clothing and furniture

•  not declaring child support or alimony

•  without fines imposed for violating the law

•  without income tax debt

•  without student loans to repay

Under Chapter 7 an individual or business can ask the courts to erase the debts owed creating a fresh start. As soon as you file for bankruptcy you are immediately granted an "automatic stay." The stay prevents creditors from:

• contacting you to collect a debt

• garnish your wages

• take your home, vehicle, or other property

• shutting off your utilities

In order to decide whether Chapter 7 is really necessary for you as a debtor, you will need to take a Chapter 7 means test. This test simply compares your income to the median income in your geographic area for your family size. This ensures you, as a debtor, are not trying to abuse the system.

If you’d like to learn more: call us to speak directly with an attorney for a free, no obligation, consultation to see if you qualify for bankruptcy and if it is the right decision for you and your family or your business.

Wessler Law Firm is a small family owned law firm specializing in bankruptcy law since 1982.

228-863-3686

Disclaimer: This article is meant for reference only, and is not intended to be legal advice.

For legal counsel regarding your situation, please consult an attorney licensed in your state.