Over the past several years, bankruptcy issues have been huge problems for hundreds of thousands of people. From the years 2013-2015, there have been roughly three million non-business bankruptcy filings here in the United States. People often turn to bankruptcy as a last-ditch effort to recover from the financial pitfalls they’ve been subjected to. In most cases, a person should file for Chapter 7 bankruptcy and work with one of the Bankruptcy Lawyers in St. Louis MO. But, before doing this, there are just a few facts that you should know.
Income Matters The Most
Not every person who files for bankruptcy will qualify for Chapter 7. When it comes to this particular bankruptcy option, a person’s income matters greatly. Under the current income guidelines, the debtor who files for bankruptcy must have an income that’s less than or equal to the average income of the state in which they reside.
Unfortunately, some of those who hope to qualify for Chapter 7 bankruptcy often have incom`e that’s higher than the average income of their state. In this case, a means test will be given by a bankruptcy court to a debtor. This particular test analyzes the income of the filer over the previous six months. To qualify for Chapter 7, the income that they receive must not surpass the amount of debt paid to creditors.
Starting The Filing Process
Those looking to file for Chapter 7 should do so at a bankruptcy court in their local city. Before doing so, it would help to have one of the Bankruptcy Lawyers in St. Louis MO at your side. Bankruptcy courts generally charge a filing fee of about $300. Upon filing, debtors will have to disclose a variety of information regarding their personal finances, including secured and unsecured debt owed, recent property sold, any property that’s classified as exempt, etc.
Debtors should take all of this information into account if they feel that bankruptcy has become their only viable option to avoid financial ruin. Filers should visit Stlbankruptcyfirm.com to speak with a legal representative. Again, depending on the state where a person resides, they may or may not qualify to file for Chapter 7 bankruptcy. Lastly, be prepared to divulge a lot of personal information concerning your financial situation.
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