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What are the disqualifiers to filing for Chapter 7 bankruptcy?

Roths Child Law

Many consumers who find themselves unable to pay their bills look to different debt relief options to gain a fresh financial start, including bankruptcy. Chapter 7 bankruptcy can provide you with that clean financial slate that you're looking for where you can wipe away most of your debts. Not passing the means test.

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Questions to Ask a Chapter 7 Bankruptcy Lawyer Before Filing for Bankruptcy

Sawin & Shea

At Sawin & Shea, LLC, our Chapter 7 Bankruptcy lawyers have helped clients just like you in the Indianapolis and surrounding areas. What is Chapter 7 Bankruptcy? Most Chapter 7 cases are what we call “no-asset” cases and people keep everything they have. However, every case is different.

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When is filing for Chapter 7 bankruptcy a good idea?

Roths Child Law

Unlike Chapter 13 bankruptcy, which is available to most Americans, Chapter 7 bankruptcy is only available to low-income filers. Under those circumstances, Chapter 13 bankruptcy is usually preferable. Most people who meet the income requirements for Chapter 7 bankruptcy don’t need to be worried.

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Chapter 7 bankruptcy: Exempt vs. non-exempt assets

Roths Child Law

Taking advantage of exemptions In many states, Chapter 7 bankruptcy filers are permitted to choose between filing federal exemptions and state exemptions. However, most filers either don’t own non-exempt assets or the ones they do own are of such minimal value that it isn’t worth a trustee’s time to attempt to sell them.

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The key advantages of Chapter 7 bankruptcy

Roths Child Law

When faced with insurmountable debts, Chapter 7 bankruptcy can be the best way to regain control over your financial situation. Importantly, Chapter 7 bankruptcy provides an opportunity for a fresh start. Typically, a Chapter 7 bankruptcy case will conclude within six months.

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Chapter 7 bankruptcy: Dischargeable vs. nondischargeable debts

Roths Child Law

Here is more on what you need to know about dischargeable and nondischargeable debt before filing for Chapter 7 bankruptcy. In most cases, unsecured debts are usually discharged by filing for Chapter 7 bankruptcy. Which debts will you be left with? It means that you are not obligated to pay them.

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Preparing for Chapter 7 bankruptcy

Roths Child Law

If you are thinking of filing for Chapter 7 bankruptcy, below are some tips you might want to consider beforehand. It is important to review all your debts before filing for bankruptcy. You want to have a complete list so that everything can be listed in the bankruptcy proceedings. Learn about property exemptions.