16 Jul Reasons to File a Chapter 7 Bankruptcy
There are many reasons people decide to file Chapter 7 bankruptcy. Here are a few we have been seeing a lot of recently:
1. Your monthly debt payments, when combined with your living expenses, exceed your monthly income.
2. You would like to wipe out your debts and receive a fresh start as quickly as possible.
3. You make below the median income in your state or you pass the “means test”.
4. You do have non-exempt property which you would like to surrender to your creditors in order to receive a fresh start.
5. You need to file bankruptcy but you would not have any money left over for a plan payment every month.
6. You do not need bankruptcy to catch up on any mortgage or car payments, and want to wipe out your unsecured debts without having to make a monthly payment to a bankruptcy trustee over the course of three to five years.
You can read a bit more about Chapter 7 bankruptcy here and also about choosing between Chapter 7 and Chapter 13 bankruptcy.
Nicholas Ortiz, Boston Bankruptcy Attorney
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