Chapter 7 of the federal bankruptcy code is designed for individuals who are unable to repay their debts. These debts may include car loans, credit cards, personal loans, or even mortgages. There are various reasons why people choose to file bankruptcy, namely because they are in more debt than they're able to afford to repay. There are also individuals who have recently lost their job or fallen victim to an ailing economy. Whatever the reason and generally speaking, Chapter 7 bankruptcy allows for an individual to have certain debts discharged for which the debtor is no longer liable.

Do I Meet the Requirements of Chapter 7 Bankruptcy? In order to be eligible to file Chapter 7 bankruptcy, you must meet certain income guidelines through what is called a means test. If your income is above the state median income level, you will be required to show that you are financially unable to repay your debts through the use of a means test. If you meet the requirements of the means test, you will be eligible to proceed with the filing of your Chapter 7 bankruptcy. Hiring legal counsel to help you determine your eligibility is crucial to all the intricate, meticulous steps involved in the legal process.

What Happens to My Property? Your legal counsel will help you determine what property will be exempt and what property will be non-exempt from your bankruptcy proceedings. Exempt property, for example, might include your car or your house. Non-exempt property may include stocks, bonds and other cash assets. Your property is then assigned to a trustee, who will liquidate non-exempt property to pay off the debts you owe to your creditors. Having an attorney who is well-versed in bankruptcy law will assist you in keeping as much of your property as possible.

Do I Need an Attorney to Help Me Through the Bankruptcy Process? Having an attorney handle your bankruptcy case would definitely be a huge asset to any debtor wishing to filing Chapter 7 bankruptcy. Although a debtor does have the option to file pro se, or on their own, an attorney can help you sort through the legal details of the law and may be able to help you keep more of your property and assets than you originally thought.

Collaborating with a Chapter 7 bankruptcy attorney on your bankruptcy case is essential. Muddling through all the tedious, finer points of the law is difficult and only through the help of an attorney may you come out of debt better than you had planned.

J. Phillip Glasscock, P.C., is a debt relief agency. We provide assistance with respect to credit defaults, mortgage foreclosures, eviction proceedings, excessive debt, debt collection pressure or inability to pay any consumer debt. We help people file for bankruptcy relief under the Bankruptcy Code.