7 Signs That Filing Chapter 7 Bankruptcy is Your Best Option
When people carry so much debt that the only debt relief they can expect to achieve is through chapter 7 bankruptcy, clearly these people are experiencing serious financial pressures.
But even when such pressures leave people with no other options, they often continue to have doubts about whether or not filing chapter 7 is the right option.
For people who remain uncertain, these seven signs that Chapter 7 is the right option should help relieve any doubts.
1.
You are unable to meet your monthly obligations.
If you cannot meet your obligations, then Chapter 7 makes sense.
Period.
2.
Your income has been reduced or eliminated.
If you have no income, or it has been reduced to a point that you cannot meet your obligations, then Chapter 7 makes sense.
3.
Your credit debt obligations are keeping you back from the basic necessities.
If you have enough credit debt that you have to choose between making your debt payments or feeding your family, then Chapter 7 might be your best option.
4.
Your income does not meet the mean for your state as dictated by the US Census Bureau.
The figure published by the Census Bureau is agreeably low; if your income is below this mean, then you should consider Chapter 7 bankruptcy if you are unable to meet your obligations as well as your personal financial obligations.
5.
You cannot figure out how to repay your total debt voluntarily over a seven year period.
If you cannot repay your debt over a seven year period or less, it may be easier financially and psychologically to file Chapter 7.
6.
Your liabilities (what you owe) exceed your assets (what you own) by a factor of more than 3.
If you owe $3 or more for every $1 you own, then Chapter 7 might make sense if you cannot meet your debt obligations on a monthly basis.
7.
You have explored all of your options.
If you have done everything you possibly could financially, like liquidate assets and savings in order to avoid bankruptcy and you have no other resources available, then Chapter 7 might be your only available option.
If any (or all) of the above seven items describe your situation, then you may have to come to terms with the fact that Chapter 7 is your only or best option.
While Chapter 7 is unfortunate, it can alleviate a lot of the financial and psychological pressures that you are facing.
But even when such pressures leave people with no other options, they often continue to have doubts about whether or not filing chapter 7 is the right option.
For people who remain uncertain, these seven signs that Chapter 7 is the right option should help relieve any doubts.
1.
You are unable to meet your monthly obligations.
If you cannot meet your obligations, then Chapter 7 makes sense.
Period.
2.
Your income has been reduced or eliminated.
If you have no income, or it has been reduced to a point that you cannot meet your obligations, then Chapter 7 makes sense.
3.
Your credit debt obligations are keeping you back from the basic necessities.
If you have enough credit debt that you have to choose between making your debt payments or feeding your family, then Chapter 7 might be your best option.
4.
Your income does not meet the mean for your state as dictated by the US Census Bureau.
The figure published by the Census Bureau is agreeably low; if your income is below this mean, then you should consider Chapter 7 bankruptcy if you are unable to meet your obligations as well as your personal financial obligations.
5.
You cannot figure out how to repay your total debt voluntarily over a seven year period.
If you cannot repay your debt over a seven year period or less, it may be easier financially and psychologically to file Chapter 7.
6.
Your liabilities (what you owe) exceed your assets (what you own) by a factor of more than 3.
If you owe $3 or more for every $1 you own, then Chapter 7 might make sense if you cannot meet your debt obligations on a monthly basis.
7.
You have explored all of your options.
If you have done everything you possibly could financially, like liquidate assets and savings in order to avoid bankruptcy and you have no other resources available, then Chapter 7 might be your only available option.
If any (or all) of the above seven items describe your situation, then you may have to come to terms with the fact that Chapter 7 is your only or best option.
While Chapter 7 is unfortunate, it can alleviate a lot of the financial and psychological pressures that you are facing.
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