Downfalls are an obvious part of life. Sometimes due to some arbitrary situations, we need to withstand some hardships. Every business or person has to struggle financially. When this covid-19 pandemic happened, every business needed to suffer in a varied manner. The businesses also suffered losses due to it. Regardless of the reason, if you’re in a difficult financial condition and you don’t have money to pay the creditors. Filing a bankruptcy petition can help you to get out of this. A variety of Financial Freedom Law Firm is working successfully in different states. These firms offer affordable services to all chapters of bankruptcy at their best.
Qualifying for Bankruptcy
The rules and process of bankruptcy in different states have no significant difference. To file bankruptcy, you need to meet the essential requirements. If you’re filing it for the second time, make sure to check that enough time has passed. In this time, Learn about the multiple bankruptcy filings and revised the previously filed chapter.
Some of the debts you cannot pay in bankruptcy include:
- Alimony and child support
- Fines, penalties, and compensation due in the event of a violation of the law
- Certain tax debts
- Debts resulting from the death or injury of another person as a result of impaired driving
- Mortgages
- Certain student loans
To maximize the chances of being succeeded, you need to meet specific chapter qualifications.
- You’re eligible for chapter 7 bankruptcy if your family’s gross income is lower than the median income for the same size family in your state. Add the gross income you made in the last six months then multiply it by 2. Compare the resulting figures income charts on the U.S. Trustee Website.
- You’re eligible for Chapter 13 bankruptcy when you have a large number of assets. It’s a costly option because the additional windfalls come at a hefty price. For some people, it’s not affordable to pay for the monthly plans, your priority nondischargeable debt, the value of the non-exempt property, or your disposable income.
Step by step guide to filing bankruptcy:
Bankruptcy court is a great solution to clear all your debts legally. It’s not very complicated to File for bankruptcy. You only need to follow the accurate method of filling out paperwork and approaching the process in the right order.