Common Questions About Chapter 7 Bankruptcy
Filing for bankruptcy is an important decision, so those considering seeking protection should thoroughly understand how it works. Here are some common questions Minnesota residents have about Chapter 7 bankruptcy.
Filing for bankruptcy is an important decision, so those considering seeking protection should thoroughly understand how it works. Here are some common questions Minnesota residents have about Chapter 7 bankruptcy:
Am I eligible to file for Chapter 7 bankruptcy? In order to find out, you must take a means test, which calculates the past six months of gross income. If the total is lower than the median income of a household of your size in Minnesota, you can move onto the next requirement, known as the real time budget. This measurement is meant to determine whether you can afford to pay your creditors on a monthly basis after paying necessary bills and living expenses. If you pass these two tests, then you qualify for Chapter 7 bankruptcy.
Do I need to work with a bankruptcy attorney? Although you are not legally obligated to hire a lawyer for this process, it is highly recommended that you enlist the services of a professional to help you navigate the complex bankruptcy laws in a way that results in the least amount of financial hardship.
Will I lose all my assets? A common misconception many individuals have about filing for Chapter 7 bankruptcy is that it means their car, house or other important possessions will be taken from them, but in most cases, a good Minneapolis bankruptcy lawyer can help ensure that assets are protected through the use of exemptions. These are divided into different categories, and the filer can choose to protect a certain amount of assets in each of them.
At Atlas Law Firm, we can help you determine the cost of filing for bankruptcy and answer any additional questions you may have. We offer free, confidential consultations and allow our clients to enroll in payment plans that can help them better afford the cost of our essential service.