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Filing a Chapter 7 bankruptcy has provided numerous people with the fresh start they need to get out from under mounting debt. However, it’s a major decision that significantly impacts future creditworthiness. This is why it’s essential not to move forward until you’ve consulted with a bankruptcy attorney and learned what you can expect from the process. The legal team at Greene Law PC has helped many residents in Farmington, CT, successfully achieve financial freedom.

Below, they go over some important facts to know if you’re considering filing for bankruptcy:

  • You Must Meet Eligibility Requirements to File: Despite Chapter 7 bankruptcy being a widely popular method for resolving debt, not everyone qualifies to use it. Your income will be evaluated if you make more or less than the average for a household your size. If you make more, you must pass a means test that identifies your eligibility based on your disposable income.
  • bankruptcy attorneyOnly Certain Debts Are Discharged: Chapter 7 bankruptcy is designed to discharge unsecured debts. This means it works well for people who have the majority of their financial burden wrapped up in things like credit cards, medical bills, personal loans, and legal fees. Debts that won’t be forgiven include student loans, alimony, child support, mortgages, car loans, and certain tax obligations.
  • There Are Property Exemptions: One of the biggest misconceptions debtors have about filing for bankruptcy is that they will lose all their assets. The truth is there are property exemptions that prevent this from happening. A bankruptcy attorney will discuss which property exemptions you qualify for and what steps you must take to keep your assets safe.
  • Filing for Bankruptcy Is a Process: There is quite a bit of paperwork involved when filing a Chapter 7 bankruptcy. Your attorney will assist you in gathering all the information you need to ensure you aren’t missing anything the court requires. Once you’ve submitted your petition to the court, it’s likely you will need to attend a meeting of creditors before you can receive your discharge orders.

Chapter 7 is one of the most common types of bankruptcy filed, but it’s crucial to have a good understanding of what it entails before deciding if it’s right for you. It’s highly recommended that you discuss your specific financial situation with an experienced bankruptcy attorney who can help you determine what your best option is. Contact Greene Law PC at (860) 676-1336, or visit their website to learn how they will guide you through the bankruptcy process with ease. 

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