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Do you qualify for Chapter 7 bankruptcy?

On Behalf of | Nov 16, 2019 | Firm News |

When California residents like you fall into debt, you may be wondering if there is any way back out. There are types of bankruptcy that you can file for. However, you will have to fit certain criteria and fulfill requirements in order to be considered eligible.

The United States Courts takes a look at bankruptcy basics for Chapter 7 bankruptcy, including what’s necessary in order to be eligible in the first place. First, you can’t have been denied bankruptcy petition due to missing a court date within 180 days of petitioning again. You also cannot apply unless you received credit counseling from an approved agency within 180 days of the petition. This can be either an individual or a group briefing.

If you are able to create a debt management plan through counseling, it must be submitted through the court. It should also be noted that although Chapter 7 is designed to relieve you of your debts, there is no absolute right to discharge these debts. Additionally, some debts are exempt from being discharged, meaning that even if you file for bankruptcy, you will still have these debts. This can include things like student loans. Fortunately, most of the common sources of debts, such as credit card bills, can be discharged.

Chapter 7 bankruptcy is not for everyone. There are other options that can be looked into as well. However, for those who qualify, it can be a viable way to get back on your feet after you have faced a financial crisis that has left you in the red.