Because Bankruptcy Chapter 7 provides a debtor with the easiest option of liquidating debt, it is the most common type of bankruptcy that debtors file with the bankruptcy trustee. Here are additional advantages of filing Chapter 7 instead of filing other types of bankruptcies.
Appropriate for debtors with Few Assets
If you are a debtor with few assets or low income, then you may need to hire the Best Chapter 7 bankruptcy lawyer Wichita to handle your case. However, one of the risks under Chapter 7 is losing all your tax-exempt assets to your bankruptcy trustee. The law provides that all non-tax exempt assets be liquidated and the proceeds divided among the creditors. Since a debtor who doesn’t have a home, or a house with negligible equity, loses nothing when declared bankrupt under Chapter 7, it is the most logical option. If most of your debt is unsecured, you can walk freely after the bankruptcy trustee approves your application, since the debtor gets nothing upon being declared bankrupt.
Debtors with Little or No Disposable Income
Bankruptcy law has rules that an individual must follow before he or she is allowed to file for Bankruptcy Chapter 7. Simply put, a debtor wishing to file Bankruptcy Chapter 7 must prove that he or she earns an income that is less than the median income of his state. Alternatively, you must pass the set Means Test, which is a proof that you do not have any disposable income that can be attached to pay the debt.
The Quickest Way to Liquidate Your Debts
As far as speed is concerned, Chapter 7 remains the fastest way of liquidating all your debts. Unlike Chapter 13 that allows the debtor to repay the debt over 5 years, filers of Bankruptcy Chapter 7 could discharge all their debt balances in as little fewer as 6 months. Since debts can wear you down emotionally, filing Chapter 7 could help you relieve all the stress fast.
However, it should be noted that not all people can qualify for Bankruptcy Chapter 7. It is important to hire a Bankruptcy Chapter 7 Lawyer to help you assess your income and expenditure before filing your application. You can Visit Website to find the Best Chapter 7 bankruptcy lawyer Wichita who will help you calculate your income and expenditure and assess whether you meet the Means Test of your state.
