When you’re struggling to make ends meet, one of the things you may want to consider is Chapter 7 bankruptcy. Liquidation bankruptcy, as it is also known, can be a great way to get out of debt without having to start over completely.
In Chapter 7 bankruptcy, there is the potential to lose some of the things you possess, but there are many exemptions to help you protect your property. You may be able to keep things like clothing for work, your primary car or truck and your home, depending on the circumstances and exemptions you qualify for.
Do you have to have a low income to qualify for Chapter 7 bankruptcy?
Yes, if you want to pass the first means test. Your annual income will need to pass the means test. Your income will need to fall below the state median. You may also be able to qualify for Chapter 7 bankruptcy with a higher income if you can show that you don’t have money to pay anything toward your debts each month. If you do have money to make a monthly payment, you’ll fail this test and may have to choose a Chapter 13 bankruptcy instead.
If you are struggling with debt, bankruptcy may be the right choice for you. Your attorney can give you more information on the options that are open to you in your specific situation. With the right information, you can make an educated decision on how to get out of debt and move on with your life with a better financial outlook.