How to Determine Whether You Qualify for Chapter 7 Bankruptcy

In these crazy times we currently live in, there have been increasingly more people all over the world struggling financially. This is largely due to a number of factors, such as poor economic performance, and inflation. The largest issue faced by many companies is the coronavirus pandemic, which has resulted in a global slowing of the economy, causing many individuals and businesses to fail fiscally. Sometimes things can get so dire financially that you must file Chapter 7 bankruptcy. This is no small deal and can have a huge impact on your life, so be sure to do some research before you commit. If you have never had to file chapter 7 before, then it can be difficult to know what exactly this entails, and who can and cannot qualify. This article will seek to shed light on a few different details which will help to give you an idea of the different ways that you can qualify for chapter 7, and if going through this process will help you in the long run.

Review Assets

One of the most important parts of determining whether or not you are eligible for chapter 7 bankruptcy is by doing a review of all assets which might be considered when making the claim. This is important because if you are in possession of many assets when filing bankruptcy, then there is a strong chance that the bank or other financial institution might consider repossessing this from you. A good way to double-check your assets is to hire someone like a financial assistant, or accountant in order to help you go through all the necessary documents. This will ultimately give you and whoever is helping with your finances a clearer picture of the situation, thereby facilitating a mechanism, which will help you to determine your best financial course of action.

Source: Aceltis Financial Group


Another important consideration when deciding whether or not you qualify for chapter 7 bankruptcy is to take a look at your mortgage situation. If you are struggling financially and still have a mortgage, then there is a very good chance that chapter 7 might be right for you. As legal and financial experts will tell you, it is quite acceptable to have your mortgage cost discharged when filing chapter 7 as a part of the process. This can be especially helpful if you are struggling to make payments, or the value of your property or home has drastically decreased in the last few decades.

Get Legal Help

IF you are trying to do anything related to taxes, legal motions, or other things which largely involve filling out forms and working with the government, then it can be extremely difficult to know the right course of action to take if you are not a seasoned professional in the given field. The reason professionals can help you out in these types of situations is because they have had years of experience in the field, in addition to proper training and practice. For this reason, if you are planning on filing chapter 7 bankruptcy, then it is highly recommended that you consult with some professionals before doing anything that could cause you further troubles. Experts from recommend finding professional help to allow you to figure out what your best course of action is financially, and help you to go through the mounds of paperwork that will need to be filled out. By using these types of online services then you should have no issue getting all of the information that you need to make the best decision from a properly informed perspective.


Credit Card Debt

One thing that is incredibly common for people to struggle financially is their increased credit card debt. This type of debt is especially harmful to your credit score because it is often one of the last places which you can turn when struggling financially, so if your credit card debt is bad, then most likely you are struggling elsewhere financially too. The great thing about credit card debt is that it can also be discharged when filing chapter 7 bankruptcy. This can be a huge relief for people who have multiple cards that are maxed out, or who have been relying on their credit cards in order to stay financially stable.

Medical Bills

During the crazy times we live in, it is fairly common for many Americans to struggle with massive medical bills, as a result of socialized healthcare. This can be extremely problematic, as some people who require medicines to survive, such as insulin, and EpiPens, are forced to pay extremely inflated prices by the greedy pharmaceutical companies in the US. This often results in prices being driven up 1000% or more from manufacturing costs, in order to allow a select few companies and their shareholders to benefit from the suffering of others. Fortunately, when filing chapter 7 then you will be able to discharge all of your medical debt, allowing you to start fresh with a (hopefully) clean bill of health. Although the practice of inflating the prices of medicine for profit is extremely morally reprehensible, this is the reality that many people are forced to live with, and consequently must adjust to.

Source: AARP

Hopefully, this article has been helpful and informative regarding the different things that can determine whether or not you qualify for chapter 7, and whether or not it will be helpful to file this type of bankruptcy claim. If you are not a financial expert, then it can be difficult to know all the ins and outs which will help you to make your financial decisions as well informed as possible. By enlisting some professional help, and also doing some independent research, then you will be able to rest easy knowing that all your financial affairs are in order and that you have a full understanding of them. By using the concrete tips and tricks in the aforementioned paragraphs, then you should be fairly well prepared to make your decision from a properly informed perspective.

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