—
People drowning in debt and unable to see a clear way out may consider filing for Chapter 7 bankruptcy to solve their debt issues, advises Bankruptcy Attorney Bryan P. Keenan.
For more information please visit https://bryankeenanattorney.com
In a deep dive on the topic, the Founder of Bryan P. Keenan & Associates, PC, in Pittsburgh, PA, explained that Chapter 7 is a tool that enables someone who has more debts than they are capable of paying back to take that legal step.
The starting point is to consult an experienced Bankruptcy Attorney to allow them to assess whether Chapter 7 is the correct legal avenue to take.
If not, then there is another option called Chapter 13 bankruptcy. A Chapter 13 allows a person to pay debts over time, usually three to five years. The amount of debt that shall be discharged shall be dependent on what you have the ability to pay.
Under a Chapter 7 filing, a person will submit all their financial information, including their income, expenses, assets and debts to the bankruptcy court. A court trustee will assess the data, and if accepted, the court will issue a bankruptcy discharge meaning the eligible debts are erased.
Mr Keenan said that dischargeable debts relevant to a Chapter 7 bankruptcy include credit card debt, car and personal loans, medical costs, utility bills and judgments from credit cards and debt collection agencies.
Debts, such as alimony, child support, debts owed to the government and student loans, are not included within the scope of a Chapter 7 filing. Secured debts tied to a property, such as mortgages, can be kept as long as payments are up to date and remain current.
He said that Chapter 7 debtors could keep other property, such as cash, furniture, and cars, under the Bankruptcy Code, which have exemptions in place for this purpose. However, if someone has more property than the debt, a trustee can seize that property to pay creditors. This situation can be avoided by filing a Chapter 13 to pay creditors any equity above and above the allowable amounts.
Mr Keenan said those who can file for a Chapter 7 bankruptcy would qualify if they pass a means test, which assesses an average monthly income over the past six months.
He added: “Someone thinking of a Chapter 7 filing is a good fit if their monthly income and living expenses show that there is no money left over at the end of the month.
He advised there are several scenarios as to who could qualify and urged them to speak to a bankruptcy attorney.
The process of filing for Chapter 7 and securing a discharge is 4 months. Mr Keenan added: “People coming out of this circle of debt will be able to start to put their financial health back on the right track. A Chapter 7 bankruptcy remains on their credit report for ten years, but they will often see their credit score improve within a few years if they actively take steps to establish their credit.”
He advises his clients to obtain a secured credit card once they receive a discharge. A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account, you can charge up to $500. You may be able to add to the deposit to extend your credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits. “You use this card as you would use any other credit card.”
Mr Keenan concluded: “The initial step is always the most difficult, but consulting a bankruptcy attorney will be the first towards ending that debt spiral.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bryan Keenan
Email: Send Email
Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220,
Phone: 412-922-5116
Website: https://bryankeenanattorney.com
Release ID: 89077427
If you detect any issues, problems, or errors in this press release content, kindly contact error@releasecontact.com to notify us. We will respond and rectify the situation in the next 8 hours.
