Are you having financial difficulties and thinking about declaring bankruptcy? Have you ever said,”I have to file for bankruptcy but I probably couldn’t afford it!”If Chapter 7 Bankruptcy is something you’re thinking about doing, you probably have many questions and worries right now. How, for instance, do you file Chapter 7 when you have no money? Can you afford the best bankruptcy attorney? Here is a brief guide on how to declare bankruptcy under Chapter 7 over chapter 13 with no money.
Why Do Individuals Opt For Chapter 7 Bankruptcy?
The Chapter 7 Bankruptcy laws are the same regardless of where you reside—in South Carolina or North Carolina. Federal law is the overall legal framework for the bankruptcy process. The United States Courts report that in 2020, nearly 379,000 Americans submitted Chapter 7 bankruptcy.
Since Chapter 7 Bankruptcy typically involves less out-of-pocket expense than Chapter 13, for instance, most people who are having financial difficulties opt to file for it. Let’s investigate further now.
What Is The Cost Of Chapter 7 Bankruptcy?
The total cost of filing Chapter 7 without legal representation is $338, as follows:
- After you take your paperwork to the bankruptcy court and submit it there in person, the court will manage your paperwork and case for a $245 filing fee.
- An administrative fee of $78. The cashiers and other court staff must be paid by someone.
- $15 in trustee fees.
The good news is that anyone who qualifies can file for bankruptcy without paying anything. The bad news is that qualifying means your income is extremely low and you are also in debt.
Report A Chapter 7 Bankruptcy Without The Aid Of A Bankruptcy Lawyer
The general rule for deciding whether to hire an attorney is as follows: The easier the filing, the more probable it is that you will be able to complete it on your own and avoid paying bankruptcy attorney fees. There is a danger. You might spend more money on mistakes than on an attorney. However, it is possible-
Forms are accessible on the United States Courts’ website. Various financial websites offer tools to assist you in the filing process. Self-help books are widely available in traditional bookstores and on the internet.
You’re probably wondering what a “simple” bankruptcy is. The solution: You can file for a “simple” bankruptcy if you only own your home and can discharge the majority of your debt. Prepare yourself by researching the rules and regulations of the bankruptcy court in your area. It’s always a good idea to educate yourself before declaring bankruptcy because knowledge is power.
Benefits Of A Chapter 7 Filing
Since Chapter 7 is easier to file and requires no payment to creditors, might seem more enticing to applicants. All debts that qualify, such as medical expenses, personal loans, and unpaid credit card balances, are expelled in this type of bankruptcy, which is known as a liquidation. Creditors will be informed to stop looking to obtain from you as soon as you file.
You won’t be required to repay creditors just like you would submit Chapter 13, which is one of the option’s biggest benefits. Instead, a bankruptcy trustee appointed by the court will sell your “nonexempt” assets to begin settling your debts. You might have to give up the following items:
- Cherished belongings
- Stamp, coin, or other valuables collections
- Another vehicle
- A second vacation home for the family
- Securities, bonds, and other financial investments, including bank accounts
For Chapter 7 Bankruptcy Filing, Following Property are Required:
- Furniture for the home
- Apparel Jewelry
- A car or a truck
- Accounts for retirement and pensions
- Government assistance (e.g., unemployment, social security benefits, welfare)
- Any compensation granted for personal injuries
You can concentrate on taking care of your loved ones when you appoint a bankruptcy lawyer from our firm to manage the court filing procedure on your behalf. They will handle all factors of it from beginning to end.
The court filing fee for bankruptcy.
Course fees for financial management and credit counseling.
You might be able to file for Chapter 7 bankruptcy if your yearly income, as determined by line 12b, is much less than $84,952.
Most people who file for Chapter 7 bankruptcy are relieved to have all of their dischargeable debts, including credit card and medical bills, paid in full. If they had credit scores below 600, many people would see an improvement.
Declaring bankruptcy may have a profoundly negative effect on your credit rating. A Chapter 7 bankruptcy will be visible on your credit reports and have an impact on your credit scores for ten years following the filing deadline; a Chapter 13 bankruptcy will have a seven-year impact.
Can You Submit for Bankruptcy More Than Once? There is no cap on how many times you can file for bankruptcy under Chapter 7 or Chapter 13, though there is frequently a waiting period.