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What Filing Chapter 7 Won't Take Away

You are considering filing Chapter 7. You realize that this is one of the largest decisions you’ll ever have to make, but you also know that it is something that must be done to pull yourself out of the debt that you are under. The fact is that many people assume that when they file Chapter 7 they will be cleaning up any and all debt that they may have. Unfortunately, this is just not the case. In fact, it is likely that many of the debts you have won’t be able to be discharged in your filing.

First, Do You Qualify?

The first consideration you have to have when filing Chapter 7 is if you even qualify for this type of action. The fact is that most people that have filed in the last few years have done so without much thought about this. Yet, as of October of 2005, this was no longer the case. Those that filed after this point were the ones that will have to consider this as a new law went into effect limiting the number of people that can do this.

To determine if you qualify, you will need to contact your attorney. Find one that specialized in bankruptcy and in cases such as your own. Then, he or she will walk you through a process called a means test in which you will be asked questions about your situation. If you “pass” the test, you will learn if you can file Chapter 7 or if you will be required to file Chapter 13 instead.

What’s Not Included

Even if you do get to Chapter 7, the fact is that there are some loans and debts that can not be discharged through bankruptcy no matter what the situation is. Those include such things as your federal student loans, or federally backed student loans, alimony, your child support payments, and debts that were incurred due to fraud. You are not able to discharge any payments that are required due to the liabilities of driving drunk or any criminal fees, restitutions or penalties that you may have.

Are you still considering filing Chapter 7? If you are, you will find countless benefits if you spend the time filing the right away, on time and then once you get out from that pile you do what you have to do to maintain your financial success. You can do all of these things with hard work and determination.