It is easy to see how financial responsibilities could quickly boil over and get out of control. Beyond day-to-day expenses, sometimes things happen that can quickly upset an already shaky financial situation. Chapter 7 bankruptcy exists to help debtors and get them back into a better financial place.
Chapter 7 bankruptcy is a bankruptcy solution when looking to find a solution for personal financial issues. There are certain criteria that determines whether or not a debtor is a candidate for Chapter 7 bankruptcy. In Chapter 7, a debtor is allowed to discharge debts, rather than rolling them into a consolidated payment, like in Chapter 13 bankruptcy. If a person meets the requirements of Chapter 7, it is an attractive option for those who have debt that is out of control.
Rather than list all the ways a person may be eligible for Chapter 7, sometimes it is easier to list the ways in which a person could become disqualified for Chapter 7. One way in which a person could be eliminated is if their income is too high. There is a test to determine this, which balances a few factors of a person’s financial snapshot to determine eligibility. Beyond that, there are a few other ways a person can be eliminated, including a previously discharged debt, a previous bankruptcy and any instance in which a person defrauded creditors.
Personal bankruptcy may not be where a person wants to be financially, but the best part is that Chapter 7 bankruptcy is often the turning point. Debtors like Chapter 7 because it can allow for a fresh start, meaning a new financial beginning. This is a huge relief for those struggling with debt. It’s possible to get to a better financial place with a personal bankruptcy filing.