Is Chapter 7 Bankruptcy an Option?
Engel Law Group: A Seattle, Washington, Bankruptcy Law Firm
Our firm helps people and families in the Greater Seattle and Puget Sound areas of Washington State to liquidate their debts under Chapter 7 of the U.S. Bankruptcy Code. For a free Chapter 7 bankruptcy consultation — just call us at 206.625.9800 or contact our firm online and a lawyer from our office will get in touch with you soon.
Worried You Won't Qualify?
While it's true that changes in the law have made qualifying for Chapter 7 bankruptcy protection more difficult — in reality, most people who would have been eligible for this type of bankruptcy before the law changed are still eligible today.
What is the Chapter 7 Means Test?
The means test for Chapter 7 bankruptcies took effect October 1, 2005. Although it is more complex than this, the test basically compares your household's income with the median income for households of the same size in your state. If your income is below the median, you qualify. If it's above the median but we can show that your "disposable income" over the next five years will be less than $6000 dollars, then you qualify as well.
Is This the Right Option for You?
Just because you qualify for Chapter 7 doesn't mean that it's automatically the best option you have. To answer this question, we need to look at what type of debt you have, how much and what assets you want you keep. If most of your debt is unsecured (as is the case with most credit card debts) — then a liquidation of those debts under Chapter 7 may be just what you need.
That said — there are many reasons why you may want to consider a reorganization of your debts under Chapter 13 instead. For instance, if you are behind on your mortgage payments or a car loan, and you want to keep those assets — then Chapter 13 is probably going to be your best option.
For answers to other questions you have about Chapter 7 bankruptcies — just call 206.625.9800 to schedule a free consultation or e-mail us and an attorney from our office will get back to you soon.
