Chapter 7 bankruptcy is one method you can use to find relief from your debts, but this option is not available to everyone. You can only use it if you qualify with your income. If you are wondering how this works, here are three essential things to know about your income with Chapter 7 bankruptcy.
Your Lawyer Must Add Up All Income Sources for Six Months
To use Chapter 7 bankruptcy, you must qualify based on your income.
If you're considering bankruptcy as a way to get debt relief, know that there are several forms of bankruptcy that you can pick from. One that may be best for you is Chapter 13 bankruptcy. Here are the key differences about using this form of bankruptcy over the others.
The basics behind Chapter 13 bankruptcy is that it allows you to adjust your debts rather than completely discharge them.
If you meet with a bankruptcy lawyer, you will learn which branches of bankruptcy you can use. You might qualify only for Chapter 13, or you might qualify for Chapters 7 and 13. If you are eligible for both and are not sure which to choose, you should talk to your lawyer about this decision. They might recommend Chapter 13 if it would provide you with more relief and assistance, and here are three ways it may help more than Chapter 7.