Jacoby & Jacoby Articles Debt Liquidation: Chapter 7 and You

Debt Liquidation: Chapter 7 and You

By Jacoby & Jacoby  Jan. 17, 2013 5:15p

Understanding Chapter 7 Bankruptcy

If you are feeling crushed under the burden of seemingly unending debt, you are not alone! More than a million Americans filed for Chapter 7 bankruptcy in 2011 alone. There is no shame in seeking help from a trained bankruptcy attorney who can help you start over again without the weight of crippling financial debt. If you are overwhelmed and feel like you have nowhere else to turn, do not hesitate to contact our firm right away.

Before you make any decisions that could permanently affect your future, however, it is imperative that you understand the basic facts about the bankruptcy process. While millions of Americans have successfully filed for Chapter 7 debt relief and put an end to their burden, many more remain unsure of what exactly this filing entails. With the help of this brief overview, we hope to arm you with enough knowledge to help you decide on the best course of action for you and your family.

Debt Liquidation

The first step in seeking to file for Chapter 7 debt relief is passing the means test. This is an informal review of your finances designed to prevent those who might otherwise be able to pay off their debts through Chapter 13 debt reorganization from abusing the system. If your average income is below the median in your area, or your disposable income is low enough, you will pass this requirement easily.

Having filed for Chapter 7, the process of reviewing your assets to determine exemption will begin. Many of your possessions may be considered exempt from this process, such as your home, clothing, and any tools you require for work. Any non-exempt assets you own will be seized by the courts and liquidated, or sold off, to generate a sum of capital, which will be used to pay your creditors. After this process is finished, your remaining debt is waived and you are free!

This kind of debt relief is often the best choice for those families with little in the way of income, property, or long term financial prospects. If you do own assets that you would prefer not to lose via liquidation, or if you have a steady income that pays you well, you may wish to seek Chapter 13 debt reorganization. For many Americans, however, Chapter 7 has helped them get a new lease on life and satisfy their creditors.

Seek A Bankruptcy Lawyer To Help You Today

If you are seriously considering pursuing a Chapter 7 debt relief filing, it is imperative that you speak with an experienced attorney before making any decisions. At the Law Offices of Jacoby & Jacoby, we are dedicated to helping you battle your creditors and end your nightmare as soon as possible! We urge you to contact our firm or visit our website at www.longislandbankruptcycenter.com to learn more about filing for debt relief before it is too late!

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