Chapter 7 Bankruptcy can be a Positive Solution!

Chapter 7 Requirements

The October of 2005 bankruptcy laws contain provisions that may prevent people from taking advantage of Chapter 7’s powerful debt reduction abilities.

The law now makes anyone who wants to file Chapter 7 bankruptcy take the Chapter 7 means test as a way of determining true need.

The means test is not designed to keep you from getting debt relief, it is more to make sure you are not fraudulently taking advantage of the benefits that bankruptcy can provide.   Generally speaking, if you earn at or less than the median annual income in your state, you should qualify for Chapter 7 bankruptcy.

Depending on the situation, you may be able to earn up to $100,000 a year and still qualify.

Chapter 7 bankruptcy provides relief to people in difficult financial circumstances-hundreds of thousands (or even millions) of people each year. Chapter 7 bankruptcy is especially helpful for people who have high unsecured debts like medical bills, credit card debt and unsecured personal loans.

In most Chapter 7 cases, the automatic stay goes into effect immediately, stopping creditors and debt collectors in their tracks.