Many people choose bankruptcy when they see no other way out of debt. The most popular type of bankruptcy is Moines Des Chapter 7 Bankruptcy. Chapter 7 bankruptcy is easier to file and the process can be completed in less than six months. You only need to visit the courthouse once. Chapter 7 bankruptcy is also known as straight bankruptcy.. You turn all of your non-exempt property over to a trustee. The trustee converts the property to cash and divides among collectors. This kind I chosen when the debtor doe not have very many assets so the release from debts is faster.
However, not just anyone can file for Moines Des Chapter 7 Bankruptcy. Your income determines your eligibility for chapter 7 bankruptcy. The first step to determine your eligibility is to calculate your average income for the last six months and compare it with the median wages of a household your size in Iowa. If the figure you arrive at is lower than the median wages for your household size, you are eligible to file for Chapter 7. Otherwise you will have to do another Means Test.
The Means Test is based on disposable income after paying mortgages, alimony, and child support. From your disposable income, deduct allowed expenses like clothes, food, and transportation. If you have $100 of disposable income left, you can file for Chapter 7. If your disposable income is $166.66 or greater. You may be forced into Chapter 13 bankruptcy unless you can prove your circumstance is not reflected in the total. What happens when you median wages fall between $100 and $166.66? In this case, you will have to determine if there is enough remaining income to pay at least 25% of unsecured debts such as hospital bills and college loans. You will not be allowed to file Moines Des Chapter 7 Bankruptcy after failing the Means Test.
Filing for Moines Des Chapter 7 Bankruptcy does not mean your access to credit is cut. Your credit card provider will decide what credit cards you are allowed to keep. Though you do not need attorney services, you are strongly advised to do so. Bankruptcy laws can be complex and the lawyer can see you through the process.
