KEY FACTORS TO CONSIDER WHILE FILING FOR BANKRUPTCY IN THE USA

1. KEY FACTORS TO CONSIDER WHILE FILING FOR BANKRUPTCY IN THE USA Filing for bankruptcy is like pressing a financial reset button. If defaulters are undergoing insolvency and are advised and guided thoroughly, they will make a fresh start. Once financial crises hit, bankruptcy is usually the only option. However, it can be a good choice if the whole process is led by experienced bankruptcy attorneys. When it is about picking the most experienced bankruptcy attorneys in the USA, Recovery Law Group—a top consumer protection law firm—should not slip under your radar. When you are planning to file for bankruptcy with a credible law firm like Recovery Law Group, you will have to choose between two solid options. CHAPTER 7 BANKRUPTCY: Chapter 7 enables you to discharge most of your unsecured debts. You should consider filing for bankruptcy under this chapter when your income can only cover your basic expenses but not your unsecured debts. CHAPTER 13 BANKRUPTCY: Chapter 13 provides you with a repayment plan, which typically spans from 6 to 7 years. In this chapter, you are given an estimate for monthly payments based on your debt type and income bracket. THE DECISION TO FILE FOR BANKRUPTCY MUST NOT BE MADE IN HASTE People consider bankruptcy when a major financial decision from the past is badly affecting their present life. Top reasons for choosing bankruptcy in the USA are unemployment, spiraling medical bills, and divorce. Sixty percent of the cases show medical debts as the most common reason that pushes someone to file for bankruptcy; however, that does not mean you can overlook all the other reasons that mostly lead to bankruptcy. When defaulters file for bankruptcy, they temporarily put an end to the collection process by the creditors. A case in point: If a defaulter is fired or re-employed lately and facing foreclosure simultaneously, chapter 13 will make the only good choice in this situation. YOUR HOUSE MATTERS When it comes to asset management in bankruptcy, you have to file for bankruptcy under the right chapter keeping in mind different state laws; bankruptcy laws vary from one state to another. Moreover, your income and expense limits determine the type of bankruptcy you should choose. Another case in point: To file for chapter 7 bankruptcy, you must qualify a means test for proving that your current income is not enough to pay off your debts. EXEMPT ASSETS Filing for bankruptcy never means parting with all your possessions. When you are filing for bankruptcy, you usually get to keep your personal properties such as electronics, household furnishings, clothes, and other exempt properties. Based on three factors—state laws, bankruptcy type, and your current financial health—you may be allowed to retain even larger assets such as family homes and cars. CHAPTER 7 AND 13 BANKRUPTCY BASICS

2. As mentioned earlier, you will need to qualify a means test if you want to file for chapter 7 bankruptcy in Los Angeles. Before filing for bankruptcy, however, you will need to determine whether your income is below the state median. Similarly, you must verify your expenses to check whether they are above the state median. By taking these steps, you will strongly support your bankruptcy claims. Note: When you are filing for bankruptcy, you must not worry as far as eligibility is concerned. That is because your poor financial conditions will automatically make you eligible for filing for bankruptcy. SUMMING IT UP For more information on bankruptcy, contact Recovery Law Group. This law firm has one of the most trusted chapter 7 and chapter 13 bankruptcy Los Angeles attorneys who will help you make a fresh financial beginning.