Maui Chapter 7 Bankruptcy Attorneys
We Can Help You Tackle Burdensome Debt
If you can’t keep up with your credit card payments and loans, then filing for Chapter 7 bankruptcy might give you a chance to obtain relief from your debts. Chapter 7 bankruptcy is one of the best options for people who have limited income. However, if your disposable income is greater than the minimum amount allowed under Chapter 7, then our friendly legal professionals at Blake Goodman, PC, Attorney can explore a Chapter 13 bankruptcy option with you as well.
Chapter 13 bankruptcy discharges most of your unsecured debt, including credit card debt, medical bills, and even personal loans. Most of the bankruptcy cases on Maui are filed under Chapter 7. Perhaps the most encouraging aspect of filing for Chapter 13 is that your debts will be discharged in a matter of months.
What Is the Means Test?
To qualify for the Chapter 7 filing, you will first need to pass a means test. This test examines your financial records, including your:
- Monthly income
- Regular expenses
- Secured debts
- Unsecured debts
The means test requires you to complete a 9-page form that asks for several documents related to your finances. The main focus of the test is to determine whether you have enough disposable income to repay your debts. The disposable income is the amount that you have left after covering your living costs. You can only file for Chapter 7 bankruptcy if you don’t have enough income to pay back a minimum amount of 25% of your unsecured debt.
What Are the Advantages of Filing Chapter 7 Bankruptcy on Maui?
Deciding whether to file for Chapter 7 bankruptcy is a big decision that shouldn’t be taken lightly. Here are some advantages of Chapter 7 that will help you to have a better understanding:
- It prevents lenders or creditors from taking aggressive and forceful action to collect the debt
- It stops lawsuits, foreclosures, and car repossessions
- It forces you to become more disciplined with your debt habits
- It can permanently protect your property, bank accounts, and wages.
When you choose Chapter 7 bankruptcy, your attorney files for you. You will only have to appear at one mandatory meeting. After that, there are usually no further hearings and your case will be over in a few short months.
Can I Discharge All My Debt in Chapter 7?
Generally, debts like recent taxes, alimony, child support, and student loans won’t be forgiven under Chapter 7 bankruptcy. In most cases, individuals eventually have to pay these types of debts.
Deciding to file for bankruptcy can be a dilemma for many people. And to make the experience worse, people often encounter common myths about filing Chapter 7 bankruptcy that simply aren’t true:
Myth #1: You Will Lose Everything
This couldn’t be further from the truth. The no-asset rule states that the debtor won’t have to give up any of their possessions as long as the value or equity in their property falls below the allowable exemptions. Exemptions allow the person to retain the primary assets they need for day-to-day life and to restart their finances after their debts are discharged.
Myth #2: Filing for Bankruptcy Means You’re a Failure
No, you don’t have to think that if you are filing for bankruptcy it means you have some character flaw. It is a financial remedy that is designed to account for unforeseen events in your life. These conditions are unpredictable, and hence no one is to blame. You will find it shocking that more than half of the bankruptcy cases in the United States are due to overdue medical bills.
Myth #3: Filing Bankruptcy Ruins Your Financial Future
Although Chapter 7 bankruptcy will remain on your credit report for 10 years, this does not mean in the slightest that you will not be able to obtain new debts during this period We offer a free service to our bankruptcy clients called “720 Credit Rebuild Program.” We help you rebuild your credit to a high score after you have filed. If you follow our steps, we can return you to a sound credit profile within a year or two.