Facing financial hurdles can be incredibly stressful. When mounting debts seem insurmountable, Chapter 7 bankruptcy might offer the fresh start you’re searching for. At Hoverson Law Offices, P.A., in Plymouth, MN, Attorney Michael K. Hoverson provides comprehensive guidance for those considering this particular route.
What is Chapter 7 Bankruptcy?
Often referred to as “liquidation bankruptcy,” Chapter 7 provides individuals the opportunity to eliminate most of their unsecured debts. This includes credit card bills, medical expenses, and personal loans. The goal is to offer a new beginning, free from the burden of previous debts.
How Does Chapter 7 Work?
Upon filing for Chapter 7, an automatic stay is activated, preventing creditors from pursuing collections or taking legal actions against you. A bankruptcy trustee is then appointed to review the case, sell non-exempt assets, and use the proceeds to repay creditors. After the process, many of the debtor’s obligations are discharged, meaning they are no longer legally required to pay them.
Who Qualifies for Chapter 7?
Not everyone is eligible for Chapter 7 bankruptcy. Potential candidates must pass a “means test,” which evaluates your income against the median income for a household of your size in Minnesota. If your income is below the median, you qualify. If above, other factors are considered to determine eligibility.
If you’re considering Chapter 7 bankruptcy in Plymouth, MN, or surrounding areas, let Attorney Michael K. Hoverson guide you. With a track record of assisting countless individuals regain financial control, Hoverson Law Offices, P.A., is your trusted partner in this pivotal journey.
Don’t let the weight of debt cloud your future. Reach out to Hoverson Law Offices, P.A., and discover how Chapter 7 bankruptcy might be the solution you’ve been seeking. With the guidance of Attorney Michael K. Hoverson, you can navigate this complex process with confidence. Your path to a brighter financial future starts with a simple call. For more insights about Chapter 7 bankruptcy or to schedule a consultation, visit the Hoverson Law Offices website.