What You Need to Know About Chapter 7
Learn About Chapter 7 from a Detroit Attorney
For anyone thinking about filing for Chapter 7 bankruptcy, there is a lot to be considered. Your eligibility, assets, and debt are all on the line and even the slightest misstep can create even further financial distress. The Law Offices of Marshall D. Schultz has been helping individuals just like you achieve success for over four decades.
Each Detroit attorney from our firm possesses a comprehensive understanding of the nuances of bankruptcy. By evaluating your circumstances, we can guide you toward a unique solution that best meets your needs. At our firm, you can have confidence as we work toward the betterment of your future.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy can also be called liquidation bankruptcy because it deals with debt in a very direct way. Most filing procedures for this method typically take four months but can extend longer based on the circumstances.
In order to be eligible for Chapter 7 bankruptcy, you are required to pass a Means Test which evaluates your income as compared to the average gross income of households in your area. Your income must be lower than the median to qualify for Chapter 7. From the moment you file for Chapter 7, an automatic stay becomes effective.
This automatic stay provides the following protection:
- Stops garnishments and foreclosures
- Closes lawsuits
- Prevents liens from being completed
- Prohibits the harassment of creditors
- May refund garnished bank funds
Unfortunately, if you file for bankruptcy, this will be recorded on your credit report for 10 years. While it can be difficult to fix your credit, bankruptcy can also be one of the best ways to improve your debt-to-income ratio.
According to The Bankruptcy Code, you are allowed to keep some personal property, cash, and assets even after filing. If your property exceeds the limit, you can appoint a Chapter 7 trustee who can manage your remaining property.
Retain Our Counsel for Your Bankruptcy Case
At The Law Offices of Marshall D. Schultz, we can help you determine if you qualify for Chapter 7 bankruptcy and walk with you through the filing process. The sooner you contact our firm, the more effectively we can improve your financial future.
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