Oliver & Legg
Call today for a free consultation
Local 732-988-1500

Blog

Who can benefit from Chapter 7 bankruptcy?

When it comes to personal financial struggles, everyone is different. This is why there are so many different bankruptcy Chapters. Each bankruptcy Chapter is designed with certain situations and financial scenarios in mind and is tailored to help specific groups of people.

Chapter 7 bankruptcy is often referred to as liquidation because it essentially uses a debtor's material assets to help pay off the debts that they acquired. Since the bankruptcy Chapter involves no repayment plan, it can be completed in a matter of months, and debts that are not repaid through the liquidation of assets are often discharged. This is why Chapter 7 bankruptcy is such a common choice for many. However, this does not mean that filing for Chapter 7 bankruptcy is right for everyone. The bankruptcy filing is only available under certain circumstances, and will only be optimal for certain people.

You must have a relatively low income in comparison to your debts

In order to be eligible to file for Chapter 7 bankruptcy, you must first pass a means test. This test takes into account your income, your expenses and your debts. Only those who would struggle to pay back their debts through Chapter 13 bankruptcy will be eligible to file.

You should not have filed for bankruptcy recently

The bankruptcy courts do not want people to get into a cycle of bankruptcy and debt. Therefore, it will not be possible to file for Chapter 7 bankruptcy if you have filed for Chapter 13 in the past six years or Chapter 7 in the past eight years.

You may have a small business

Many people who file for Chapter 7 bankruptcy are small business owners who are dealing with extensive business debts that are assigned to the business owner individually. Small business owners who are adversely affected by personal liability may benefit greatly from Chapter 7 bankruptcy, especially because they will likely not be subject to a means test if they have more business debt than personal debt.

If you are worried about how you will be able to effectively pay off your debts in New Jersey, it is important that you look into the pros and cons of all bankruptcy filing options.

No Comments

Leave a comment
Comment Information

Get A Free Lawyer Consultation

With offices in Toms River and Neptune, attorney William H. Oliver is ready to answer your questions and help you find the right debt relief solution. Evening and Saturday appointments are available. Call local: 732-988-1500 or fill out our contact form.

Email Us For a Response

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Toms River Office
609 Main Street
Toms River, NJ 08753

Fax: 732-775-7404
Toms River Law Office Map

Neptune Office
2240 State Route 33
Suite 112
Neptune, NJ 07753

Phone: 732-341-1550
Fax: 732-775-7404
Neptune Law Office Map

visa, master card, american express, discover network