How Much Debt Do You Need to File Chapter 7?
When you’re in financial distress, you may begin to consider your bankruptcy options. Maybe you’ve heard that Chapter 7 completely eliminates all unsecured debt and leaves you free to rebuild. That’s true. You may be wondering whether your kind or quantity of debt is allowed in Chapter 7 bankruptcy. Well, the good news is that there is no minimum or maximum amount of debt in order to file for Chapter 7.
Eligibility Is Means Tested
Chapter 7 bankruptcy is means tested. The income limit is the median household income for your particular state, and you need to be at or below that amount in order to file Chapter 7. For Wisconsin, the median household income is $64,168. Your median household income is calculated using the average gross monthly income that you had for the six months prior to you filing Chapter 7 bankruptcy. If your circumstances suggest that you may be close to that amount, then it is likely that expert advice can help you meet the requirement. The professionals at Burr Law can help determine your eligibility for Chapter 7.
Chapter 7 Ends Collection Actions
When your debt is crippling, it comes with collection agents working relentlessly to extract money you don’t have. Letters that threaten dire consequences, phone calls that badger you at all times of day or night, these tactics can make you feel hunted, haunted, or both. The moment you file bankruptcy, all collection activities must stop. That’s true with all bankruptcy filings, including Chapter 7.
Chapter 7 Eliminates Unsecured Debt
Unsecured debt describes money you have gotten without putting down any collateral. So it applies to all credit card debt, for instance. With Chapter 7 Bankruptcy, you don’t need to worry about any sort of repayment for your credit card debt, medical debt, and other unsecured debt. The entire process takes between 3 to 6 months, and then your debt has disappeared. Your debts are cleared, once and for all.
You Are Not Alone
Often unspoken, the negative impact on your mental health when you have significant financial issues is undeniable. Filing for bankruptcy shifts all of that stress and tension. Instead of facing your money problems alone (or trying to ignore them), you will be working with professionals dedicated to helping people in your situation. Over 6000 Wisconsinites declared bankruptcy in the first 8 months of 2021, and 75% of them were Chapter 7 filings. The experts at Burr Law can guide you through the process step by step, and you can breathe a sigh of relief.
Bankruptcy can give you a clean slate, though it is not without difficulties and dangers. If you are considering bankruptcy, it is vital that you consult with experts. There is no minimum or maximum amount of debt that you need in order to file Chapter 7 bankruptcy. The process is complicated, though, and the professionals at Burr Law can evaluate your particular circumstances and advise you on the best way forward.