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You are thinking about filing Chapter 7 Bankruptcy. You
understand that this is
one of the biggest decisions you’ll ever have to make. You also
realize that it is an action you must take to raise yourself up out of
the debt you're under. Many people think when they file Chapter 7 they will be
dissolving all
their old debt that's keeping them down. Unfortunately, this is just not
true.
In fact, it is very possible that many of the bills you owe will not be discharged in your
Chapter 7 filing.
First, Do You Qualify?
The first thing you have to consider when when you're thinking
about filing Chapter 7 is if
you even qualify for this type of action. The fact is that most
people that have filed in the last few years have done so without
much thought about this. However, since of October of 2005, it's no
longer the case. The people that filed subsequent to this time are the ones
that will have to give this serious consideration as a new law went into effect
limiting the number of people that can do this.
To establish if you qualify, you will need to get a hold of your
attorney. Find one that specializes in dealing with bankruptcy and in cases
like yours. Then, he or she will take you through a process called a
"means
test." This is a process in which you will be asked numerous questions about your
specific situation. If
you “pass” the test, you will discover if you can file Chapter 7 or if
you will be obliged to file Chapter 13 instead.
What’s Not Included
Even if you do get to file Chapter 7 bankruptcy, there are some
loans and debts, in fact, that cannot be discharged through bankruptcy no
matter what your situation is. Those include such things as:
- your
federal student loans, or federally backed student loans
- alimony,
your child support payments
- debts that were incurred due to
fraud.
In addition, you can't discharge any payments that are required
due to the liabilities of driving drunk or any criminal fees,
restitutions or penalties that you may have.
Still considering filing Chapter 7? If you are, you will
find numerous benefits if you spend the time filing the right away
and
on time. Once you get out from under that pile pile of debts, you do what you
have to to maintain your financial success. You can do all of
these things if you work hard and with determination.
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