When struggling with debt, some people make mistakes that get them further in debt, such as attempting to pay off their bills with credit cards. When a person has mostly unsecured debts and has done all they possibly can to pay them, it may be beneficial for them to consult with a chapter 7 bankruptcy lawyer. This will provide the individual the legal help they need so their debts can be taken care of in a timely manner.
Chapter 7 bankruptcy is primarily for individuals who are loaded with mostly unsecured debts such as credit card and hospital bills. Unsecured debts are preferred for this type because it is settled so quickly, typically in under six months. A lawyer will help a person determine which type of bankruptcy will be most beneficial for their financial needs so they can overcome their debt.
Chapter 7 requires the court to put a third-party trustee in charge of the debtor’s bankruptcy case. This person is charged with the responsibility of making sure there is no property that can be liquidated to pay off the debts that are owed. If there is no non-exempt property, the trustee has the power to absolve many of the debts a person owes so they are free of their financial burden.
Before a person can be approved for chapter 7, they must undergo the means test process. This is basically an investigation of the financial records of the debtor to ensure they truly cannot pay off their debt. The individual’s income must not be above the median income for the state they reside in. Once approved, the trustee is assigned and works with the chapter 7 bankruptcy lawyer and debtor to make sure debts are paid off or absolved.
Dealing with too much debt is never fun. If you are facing more debt than you can possibly handle, you should seek legal help before things get worse. The chapter 7 bankruptcy lawyer will help you through each stage in the process so you can overcome your debt. For further information, visit website right away.
