Chapter 7 Bankruptcy is created for borrowers who are having monetary troubles and are not capable to repay their financial obligations. If your present monthly income is more than the State Median Income you will be demanded to conduct a Means Test to decide if you are eligible for this sort of bankruptcy. If you cannot meet up with the demands of the Means Test then you could be prevented from submitting a Chapter 7 Bankruptcy and get the option of converting to Chapter 13 Bankruptcy or processing a Chapter 11 Bankruptcy.
The purpose of processing a Chapter 7 Bankruptcy is to acquire a release of your present financial obligations. If, on the other hand, you are identified to have committed specific types of incorrect behavior described in the Bankruptcy Code, your release could be refused by the Court, and the intent for which you submitted the bankruptcy petition will be defeated.
Within selected circumstances you could possibly be able to retain asset that you have paid for governed by a legitimate security interest. A few of these possibilities consist of what is named redemption and the renewal or reaffirmation of an existing pre-bankruptcy financial debt. Your
bankruptcy lawyer can make clear the alternatives available to you.
