If you have more debt that you can repay, you may want to consider filing for a Chapter 7 bankruptcy. This may allow you to get many of your debts discharged and relieved your mind at the same time. Knowing some of the specific details regarding Chapter 7 bankruptcy may help you if you are faced with this situation.
One of the last things you will want to do when faced with debt you can't pay if face another steep fee. If you intend to file for Chapter 7 bankruptcy, you will be glad to know the costs for doing so is only $335 as of June 1, 2014. This makes filing for this status affordable for people who are having a difficult financial time.
This amount includes the court and administrative costs only. If you hire an attorney to help you with the paperwork and process involved, there will be an additional fee for this that must be paid.
In order to qualify for a Chapter 7 bankruptcy, you are required to fill out a number of forms. You must be able to prove the amount of your income and expenses are less than your debt.
Listed below is the information you are required to provide:
1. The amount of your income and proof of this by way of a W-2 or old paycheck stub to verify your monthly or annual income to the court.
2. The total of your monthly expenses which may include shelter, food and clothing.
3. A list of the creditors you owe and these should be listed individually if you own more than one.
Additionally, you must pass the means test that will identify you as being able to qualify for this legal status.
A large advantage to filing for a Chapter 7 bankruptcy is that your creditors will be unable to contact you regarding your debt. This includes by phone, mail or any other method, as well.
Additionally, there can't be any legal actions that can be taken against because you didn't pay your creditors. The automatic stay prohibits a lawsuit from being filed against you while you are filing for this legal status.
Finally, paying off debt when you don't have the money to so may require you to file for bankruptcy. Consider consulting with a bankruptcy attorney like Arthur M Richard to guide you through this legal process for the best results.