More people than ever before are facing financial difficulty due to the hit the economy has taken over the last few years. Individuals, families, and businesses alike are struggling to get out from under the crushing weight of debt. An option many people turn to is a chapter 7 bankruptcy or a chapter 13 bankruptcy, depending on their situation and needs. When dealing with court hearings and proceedings for active bankruptcies it is important to have a skilled and experienced legal team on your side.
It is important that you understand the drawbacks as well as the advantages of chapter 13 over chapter 7 and when chapter 7 may be the better option to consider. Your legal team needs to be made up of experienced bankruptcy attorneys who know how to present your case and help you get the best ruling possible from the judge. They will be able to assist you through the process and answer any questions you may have regarding all types of bankruptcies that are available today.
For many people struggling with overwhelming debt, filing a Chapter 7 bankruptcy is a way to be absolved of these debts and have a debt-free future. However, the current cost of filing a Chapter 7 bankruptcy is $306 — and that’s not counting local bankruptcy attorney fees. This makes filing for a bankruptcy seem inaccessible for people with low incomes.
However, despite what you may think, you can afford to file for bankruptcy, no matter what your financial situation looks like.
Here are the top four reasons why you can afford filing Chapter 7 bankruptcy:
1. You might be eligible for a fee waiver: Individuals whose income is less than 150% of the income poverty line can have the $306 bankruptcy filing fee waived. You can also ask the court to let you pay the filing fee in increments, rather than all at once.
2. Free legal help is available: It’s almost never advisable to file Chapter 7 bankruptcy without a Chapter 7 bankruptcy attorney. If you are unable to afford legal bankruptcy help, you can contact the legal aid society in your area, which can help you find low-cost or free legal help with filing bankruptcy. The American Bankruptcy Institute’s Pro Bono Locator is also a good source for locating free Chapter 7 bankruptcy attorneys.
3. You can hold on to most of your possessions: Some people are scared by the fact that Chapter 7 bankruptcy requires debtors to surrender almost all of their possessions to help repay their debt. However, federal law requires some property exemptions, such as your house, your money in the bank, household goods and clothing.
4. You can’t afford not to file Chapter 7 bankruptcy: Chapter 7 bankruptcy can give you an opportunity to get relief from creditor harassment and mountains of debt, which are huge stressors and a detriment to your health. By filing for bankruptcy, you can start over and rebuild your finances, which is priceless. Continue your research here.