Chapter 7 bankruptcy is one of the more common forms of bankruptcy. Unlike Chapter 11 and Chapter 12 bankruptcy, Chapter 7 bankruptcy is available to both individuals and businesses, much like Chapter 13 bankruptcy. The key difference between Chapter 7 and Chapter 13 bankruptcy is that Chapter 7 bankruptcy involves asset liquidation while Chapter 13 does not. Chapter 7 bankruptcy also involves what’s called the “means test,” which is a check on an applicant’s need for financial assistance through bankruptcy.
Many people find themselves under financial strain at some point in their lives, and often, bankruptcy can be the answer to regaining financial stability. To learn more about Chapter 7 bankruptcy and whether it is the best decision for you, contact an experienced Raleigh bankruptcy lawyer of the Bradford Law Offices, today by calling (919) 758-8879.
Understanding Chapter 7
Chapter 7 bankruptcy differs from other forms of bankruptcy in several ways, but it is one of the most popular forms of bankruptcy that individuals and businesses file for. Several things to keep in mind about Chapter 7 bankruptcy include:
- It involves asset liquidation to eliminate or reduce debt.
- There are both dischargeable and non-dischargeable debts.
- Both individuals and businesses can file for Chapter 7.
- For individuals with primarilty consumer debt, it involves a “means test” to evaluate an applicant’s eligibility
Although bankruptcy may seem hard to face initially, it can be a smart financial decision for many individuals and businesses who have found themselves in dire financial circumstances.
If you or someone you know is considering filing for bankruptcy, contact an experienced and compassionate Raleigh bankruptcy attorney of the Bradford Law Offices, today at (919) 758-8879.