Understanding Chapter 7 Discharge

Individuals who have decided to file for Chapter 7 Bankruptcy should know that the primary purpose of the process is for them to have a “fresh start” by discharging some of their debts.

During a discharge, debtors are released from being liable to settle some of their financial obligations. The process also legally protect debtors from any actions that could be done to them by their creditors who are seeking payments. Usually, most of the debts of a person are discharged under Chapter 7. Individuals who are considering this course of action should bear in mind that the court in some cases may deny them of having a discharge. Since a discharge at some point can be complicated, individuals who are seeking for debt relief are advised to seek legal help from a skilled bankruptcy attorney.

In this situation that you are looking forward to having a fresh financial start by filing for Chapter 7 Bankruptcy, an attorney of the Bradford Law Offices, PLLC in Fayetteville may advocate for you. Find out how we may work on your behalf today by calling (919) 758-8879.

Determining Eligibility for Chapter 7 Bankruptcy

Unfortunately, Chapter 7 bankruptcy relief is not available to everyone. To file for Chapter 7 bankruptcy, you must be able to show that your income is less than the median average for households of similar size in your state by completing something called the means test. In the means test, you will be asked to provide information that details all of the income that comes into your household. If this amount is less than the medium income for households of your size in your state, you are likely eligible to file for Chapter 7 bankruptcy.

However, even if you earn more than the median income for households that are your size, you could still be eligible to file for Chapter 7 bankruptcy. In addition to examining your income, the means test will also take into account your regular household expenses. Your household income minus certain living expenses will result in what is known as your disposable income. If your disposable income is less than the median disposable income for other households of your size in your state, you will likely pass the means test and be able to file for Chapter 7 bankruptcy.

If you are struggling with an unmanageable amount of debt, you should reach out to a Fayetteville bankruptcy attorney at the Bradford Law Offices, PLLC, about whether Chapter 7 bankruptcy is right for you. If you are not eligible for Chapter 7 or if it is simply not right for you, our legal team can help you explore all of the options available to help you deal with your debt. To speak with a bankruptcy lawyer about the particulars of your situation, please call our offices at (919) 758-8879 today.