Tax Help: What is Chapter 7?
Have you found yourself in financial distress? You’re not alone. Perhaps you’ve experienced unexpected medical costs, lost your job, been too generous to friends and relatives, gotten divorced, or simply mismanaged your money.
You may wonder…what is Chapter 7 Bankruptcy, and do I qualify? Those questions are asked by many people in Milwaukee and across the United States every day. More and more Americans are finding debt relief by filing Chapter 7 Bankruptcy. In fact, in the Eastern District of Wisconsin, which includes Milwaukee and the surrounding area, over 6,000 Chapter 7 filings have been made between January 1 and September 30 this year.* For ⅔ of American’s it’s due to “medical issues —either because of high costs for care or time out of work.”** Whatever your particular reason, Chapter 7 Bankruptcy may be the solution you are looking for.
Chapter 7 Bankruptcy, also known as Liquidation Bankruptcy, erases your debt entirely, with a cuople of exceptions. The whole process takes between three and six months. You will be able to keep all of your personal property as long as its value fits within the bankruptcy exemptions you are entitled to take. You will also be able to keep your car and home as long as you are not behind on your loan payments. For instance, you will retain your car if you need it to get to work. The experts at Burr Law Office can help you by protecting the things you truly need and at the same time eliminating your debt so that you can begin again with a clean slate.
There is no minimum or maximum amount of debt needed to file a Chapter 7 bankruptcy. There is an income status requirement, though. Your income needs to be equal to or below Wisconsin’s median income based upon your family size.*** The exemptions allowed should be clearly understood as well. Usually, when spouses file together in Wisconsin, each spouse can claim the full amount of the exemption (informally called “doubling”) as long as each spouse has an ownership interest in the property.
Chapter 7 is designed to help honest, well-intentioned borrowers who are in financial trouble. How does Chapter 7 bankruptcy work and what happens to your debt after you file? In the following video, a CPA will explain everything you need to know about this common form of personal bankruptcy, how you can file for it, and what happens to you after you file.
If you are considering filing for bankruptcy, you need the best legal representation available to help you through the tumultuous and stressful process. Attorney Michael Burr and Burr Law Office can help give you and your family a fresh financial start.
You can schedule a free, no-obligation consultation to learn whether or not bankruptcy is your best option. Each case is handled personally by Attorney Burr from start to finish. Call today to start your journey to financial freedom!
**Lorie Konish, https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html