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There have been drastic changes in the chapter 7 bankruptcy law making it difficult for debtors to be eligible for a complete discharge of debts. Under the new set of rules and regulations, it could be difficult for some individuals, especially those with higher monthly income, to use chapter 7 liquidation processes to get rid of their excessive debts. Alternatively, such debtors could be required to repay a portion of their debt under chapter 13. Furthermore, it is mandatory for probable bankruptcy filers to undergo credit counseling sessions with additional counseling for budgeting and debt management. BankruptcyOnly offers professional services to assist debtors who are considering filing personal or small business bankruptcy in order to get rid of their significant debts.

Filing bankruptcy laws can be a complicated process to understand and undertake too. BankruptcyOnly can make the entire procedure very simple and straight forward for you. To help you to be familiar with the changes in the new bankruptcy laws the below mentioned information could be crucial.

• Previously bankruptcy filers had the right to choose bankruptcy options. As a result, most of the debtors chose chapter 7 liquidation processes over chapter 13 repayment plan. Nevertheless, as per new amendments in bankruptcy law, debtors who fall in the higher income group could find it challenging to qualify for chapter 7 personal bankruptcies.
• Typically, the new bankruptcy law requires bankruptcy filers to compare the existing monthly income against the median income for a household of a similar size in a particular state. If your monthly income is less than the median income, then you can be eligible for filing a chapter 7 personal bankruptcy.
• If the income exceeds the median income determined for a specific state, a debtor is subjected to the “Means Test” for determining the net disposable income available with the debtor. Most individuals, who have higher incomes, and are considering filing a chapter 7 bankruptcy are seldom aware of this condition and end up getting qualified for a chapter 13 repayment plan.
• The chapter 13 bankruptcy law on the other hand requires debtors to pay back a portion of the debts. In order to ensure this, debtors need to determine the disposable income by subtracting certain monthly expenses, permitted by the IRS. This is to be done by using a disposable income calculator and if there is any surplus income left, you automatically become eligible for a chapter 13 repayment plan for paying back your creditors. But if there is no disposable income left, you can qualify for a chapter 7.

Thus, considering the aforesaid intricacies involved in bankruptcy filing, it is always desirable to get help from a professionally qualified and experienced bankruptcy attorney when you are out to file for a chapter 7 bankruptcy. Our bankruptcy lawyers can assist you in getting crucial information and in guiding you through the process till the end which could considerably enhance your chances of being successful in qualifying for a favorable bankruptcy solution.

Get your free bankruptcy evaluation for exploring your bankruptcy options today!