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Under the laws of Chapter 7 bankruptcy there are no monthly payments to a trustee. Often times, when one thinks of bankruptcy, you’re most likely thinking about Chapter 7.
Bankruptcy, under Chapter 7, is designed for those who can’t pay their bills. For example: if your monthly income––less your regular monthly living expenses––leaves you with under $100 to pay toward your credit cards, then you may qualify for Chapter 7.
What If I am current on my bills?
Reading a general description of Chapter 7 some may believe that they don’t qualify for a Chapter 7 bankruptcy because they have been able to make payments on their credit cards. If you have been paying down credit card debt only to be come up short in paying down other debts or on bills––then you may still qualify for chapter 7.
For Those Receiving Social Security
There is an exception for those clients who receive Social Security benefits. The exception is defined in this way: one can have money left over after they have covered all their living expenses so long as the money left over is equal to or less than their Social Security income.
Unaffected Debts After Filing Chapter 7 Bankruptcy
Those debts not affected by the filing of the Chapter 7 bankruptcy are as follows:
1) Debts you want to keep like a house or car payment; and/or
2) Debts you have to keep such as child support, certain taxes and student loans. (i.e. non-dischargeable debts)
What is the timeline for Chapter 7 Bankruptcy?
Typically, a Chapter 7 bankruptcy is finished 90 days from filing. Once completed, the Court issues a “discharge order,” which states that the person filing Chapter 7 bankruptcy is no longer personally liable for the debts covered in the bankruptcy. This means that you have successfully completed the bankruptcy.
Find Out If Chapter 7 Is Right For You
Take the first step in getting your questions regarding Chapter 7 bankruptcy answered by Booking a Consultation with Gravis Law today.