Getting in over your head in debt is becoming more and more common. Small purchases on credit cards suddenly add up, and when added to the car and mortgage payments, it may seem like an impossible hole to crawl out of. But chapter 7 bankruptcy may be the answer, if you qualify.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is specifically for lower-income families who may find it difficult to pay off their bills. It offers a fresh financial start for those who are struggling with debt. Through asset liquidation, your overwhelming debt is paid off, which stops wage garnishment so you can truly start over.
Do I Qualify?
One of the main qualifications of chapter 7 for individuals is income. Consider your income. If it is below the median income for Pennsylvania, you automatically qualify for chapter 7 bankruptcy. If you make more than that, it all depends on how much disposable income you have after paying your monthly bills. If it is above a certain percentage, you do not qualify for chapter 7; but, you can file for chapter 13 if you are still in need of debt relief.
Chapter 7 for Businesses
Businesses who are facing insurmountable debt may also qualify for chapter 7 bankruptcy. Like individuals, businesses will also undergo asset liquidation to pay off their debts. Different business structures must meet different requirements to declare chapter 7 bankruptcy, so contact a qualified attorney to see if it is right for you.
You may feel like you are drowning in debt, but there are ways out from under it. Filing for chapter 7 bankruptcy can give you a fresh start, leaving your debt behind you. For a free consultation to see if this solution is right for you, contact our expert attorneys in Pittsburgh today.