In A Flash
If you are considering filing for bankruptcy, the first thing to consider is whether or not you have thoroughly considered all of your options. Other debt relief options, such as negotiations or consolidation, may be able to assist you in settling your debts prior to filing for bankruptcy. If you are financially insolvent, unable to earn an income, or at risk of foreclosure, filing for bankruptcy may be your best option immediately.
If you choose to file for bankruptcy, you must choose which Chapter to register under. If you are considering Chapter 7 bankruptcy, you must satisfy the means test, which compares your income to the state median income. The purpose of the means test is to determine whether you have any disposable income that could be used to pay off your debts. If you do not qualify for Chapter 7 bankruptcy, you may still qualify for Chapter 13 bankruptcy. Chapter 7 and Chapter 13 are each designed to assist you in resolving your debt issues, albeit in different ways and with various advantages.
Choosing the appropriate Chapter of bankruptcy is essential, as each offers unique risks and benefits. For instance, a Chapter 7 bankruptcy may eliminate your debts in a matter of months, but you run the risk of losing non-essential assets. In addition, not all debts qualify for Chapter 7 debt discharge. Infrequently are secured debts and priority debts such as taxes eligible for discharge under Chapter 7. In Chapter 13, you can include debts such as auto loans, taxes, and other priority debts, but the repayment plan must be stretched out over three to five years.
The petition filing is the final consideration. This document provides the court with an overview of your financial situation, including your income, debt, and assets. If you want to win your case, the best course of action is to be trustworthy. Providing false or lacking information regarding any of these factors is likely to result in the dismissal of your case and may even result in fraud charges. Do not conceal information in an effort to safeguard your assets; the bankruptcy exemption laws provide protection for the majority of your assets.""
" - https://www.affordablecebu.com/
