Is Chapter 7 Bankruptcy Always the Best Option?
While Chapter 7 bankruptcy may represent the quickest and easiest option, it is not necessarily the best option. Not all people qualify for Chapter 7 filing, and those who meet the requirements may have any number of reasons for choosing another form of bankruptcy or an alternative debt relief solution. A Queens Chapter 7 bankruptcy lawyer can help determine if you qualify for Chapter 7 — and if this type of bankruptcy is the right choice for your circumstances.
The overall purpose of Chapter 7 bankruptcy is allowing individuals to sell certain property in an attempt to partially repay unsecured creditors, after which the courts require the creditors to forgive any remaining balances. The United States Courts explain that individuals who file for liquidation under Chapter 7 bankruptcy must meet a means test to determine if their income falls below a specific threshold level. If their income exceeds that level, they may still qualify for another form of bankruptcy such as Chapter 13, often called wage earners bankruptcy.
Many individuals who meet the filing requirements for Chapter 7 still prefer taking another option, such as repaying their debt through Chapter 13 bankruptcy. Some people simply feel a moral obligation to repay their debt. Others want to save important assets such as their homes. And, since Chapter 7 sells off assets, single owners or partners of small businesses choose other options in an effort to retain their business assets so they can keep the doors of their businesses open. An experienced Queens Chapter 7 bankruptcy attorney works closely with clients to assess their financial status and their overall needs and preferences, before determining if they qualify or if they have other reasons for pursuing a different debt relief option.
The Mark E. Cohen, Esq. conducts a thorough analysis of your specific circumstances and your personal preferences to help ensure you take advantage of the most appropriate options.