To file for Chapter 7 bankruptcy, you'll need to pass a means test. This is used to determine if you have the means to pay your debts or if you really qualify to file for Chapter 7 bankruptcy. The Rationale of Chapter 7 and Means Tests The purpose of a means test is to make sure that those who have the means to pay off their debts do not qualify. Instead, they will be required to file for Chapter 13 bankruptcy and pay some or all of their debt owed.
- In most chapter 7 bankruptcy cases, the amount of debt owed versus the amount of available assets to pay them is so lopsided it's common for bankruptcy trustees to tell creditors not to bother filing proof the debtors owe them money cause they're unlikely to get anything. However, in the small percentage of situations where there are assets that can be used to pay creditors, it's important to verify any proof of claims that are filed and object to the ones that fall into one of these two categories.
- When you file for a chapter 7 bankruptcy, your assets and debts are held in a kind of legal limbo during the process. To ensure that everything goes smoothly, a person known as the bankruptcy trustee is appointed to oversee your case. The trustee is in charge of several major functions and it's important for filers to understand their jobs and their compensation. Read on to learn more. The Creditor's Meeting
- If you declared bankruptcy in the past, you may be in for a few surprises if you file again. All bankruptcies filed since 2005 must abide by some big changes, and it might help you to know about them ahead of time. Read on to learn more about changes brought about by the bankruptcy code revisions and be prepared when you get ready to file. Understanding the Bankruptcy Abuse Protection and Consumer Protection Act of 2005 (BAPCA)
- There are two main options when it comes to bankruptcy, and Chapter 13 is the option that typically benefits people who own homes and are behind on their mortgages. If you own a house and are behind on the payments, this branch of bankruptcy could offer some relief to you, and there are two main ways Chapter 13 could help you when it comes to your home mortgage. It gives you time to repay your past-due balance without the risk of losing your home