You do not have to be behind on your credit card payments to be in financial distress nor do you have to wait for your accounts to go into collections before you can begin the process of filing. However, you will have to take the means test to assess whether or not you qualify for a Chapter 7 or a Chapter 13 bankruptcy. Continue reading to learn more.
Is Bankruptcy Right for You?
To qualify for a Chapter 7 bankruptcy, your income should be below the median. If it is above the median, you may still qualify if your expenses are high compared to your income. If you do not qualify for a Chapter 7 bankruptcy, you may still qualify for a Chapter 13 bankruptcy. You will need to have a regular source of income as well as enough disposable income to qualify. Regardless of the type of bankruptcy you file for, however, you do not need a low credit score or to be behind on your credit card payments to move forward.
That said, even though you may qualify to file for bankruptcy, does not mean you necessarily should. For example, if you have a lot of cash saved, but need to get rid of medical debt, filing for bankruptcy may not be in your best interests. If you file for a Chapter 7 bankruptcy, the cash may be seized to distribute to your creditors. Under these circumstances, it may be best to negotiate a lump sum settlement with your provider.
However, this does not mean you have to be behind on your bills for a bankruptcy to make sense. If you are having a hard time making ends meet, filing for bankruptcy may be right for you. Speak to an experienced bankruptcy attorney to review your options and assess which is best for you.
Schedule a Free Consultation with a Knowledgeable Bankruptcy Attorney Today!
If you are experiencing financial distress and are considering bankruptcy as an option to address it, the legal team at the Law Office of Seni Popat, P.C. can help you. Our legal team is committed to guiding clients through this complex legal process, so they can work toward a better and brighter future.
Reach out to our law office today at (718) 340-3385 to set up a free initial consultation with our bankruptcy attorney to get started on your case.