A look at the Chapter 7 bankruptcy process

On Behalf of | Mar 15, 2022 | Chapter 7 Bankruptcy |

It has been a tough couple of years financially for many people in Missouri and across the country. In some cases, individuals have determined that the most viable option available to them to get things back on track is to wipe the slate clean and start fresh. Chapter 7 bankruptcy is a valuable tool that helps people to do just that.

Thinking about filing for bankruptcy can be stressful, especially if there are a lot of unknowns involved. That is why it is helpful to learn about the Chapter 7 program ahead of time, which can help take the mystery out of it and provide information that enables individuals to make informed decisions as they prepare to file a petition. It is also good to know where to seek support if a problem arises throughout the application process.

Chapter 7 is the most common type of bankruptcy

If debt has gotten out of hand, Chapter 7 bankruptcy is the most basic type of debt relief program available. To qualify, a person must take a means test, which is a way of comparing one’s income to the medial level throughout the state. If income is below a certain level, the individual may be eligible for the program.

Additional matters of importance

If a person wants to claim Chapter 7 bankruptcy, he or she must take a state-approved credit counseling course. There is also paperwork that must be completed, as well as fees that must be paid. This type of bankruptcy resolves debt by liquidating assets, then using proceeds to pay back lenders. A Missouri attorney who is well-versed in bankruptcy laws can help a person navigate the system.

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Andrew Tarry