Thursday, September 1, 2016
Three Characteristics Of A Typical Chapter 7 Debtor
Chapter 7 is a form of bankruptcy that allows a person to get rid of most of their debt, and most importantly Chapter 7 is the chapter of bankruptcy that allows a debtor to eliminate unsecured debts. Most unsecured debt is made up of medical bills, signature loans, and credit card debt. The monthly payments on these debts can be quite high, given the interest rates charged, and when a consumer has too much of this type of debt it can be near impossible to manage it without going into default. If you qualify for a Chapter 7 case you can discharge these debts, freeing up money each month for other expenses.
Qualifying for a Chapter 7 depends on your entire financial picture. Three characteristics of a person or couple who typically qualify for Chapter 7 bankruptcy include:
• Those people or couples who have an income in a lower bracket.
• Those people or couples with a lot of unsecured as well as secured debt.
• Those people or couples who are not able to pay even a portion of their unsecured debt each month, after first having paid secured obligations such as car and home loans.
If you simply have more debt than money coming in each month, you are likely the picture definition of a Chapter 7 debtor. The appeal of filing a Chapter 7 case is that the entire balance on unsecured debts is discharged, meaning the debt does not have to be repaid in any amount. This is a huge relief for those people that are unable to make ends meet because it gives you the freedom to pay your secured debts and still have money left over for necessities. Just think about what you could do with your paycheck if most of it were not earmarked for credit card payments! When the money you would normally put towards those payments can go to other things like auto insurance or groceries, you can sleep a little better knowing that you have disposable income to fall back on each month. Eliminating unsecured debt also eliminates the possibility of making a late payment, which results in late fees and potentially increased interest rates being charged. When fees and interest start to accumulate, unsecured debt quickly becomes something you will never get out from under, and this can be financially devastating. If you need help with your bottom line, call us today. We will look at your case and let you know what type of bankruptcy you qualify for, and how you will benefit from filing.
For more information chapter 7 bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.