Article by Florida Law Group
In order to be eligible for chapter 7 bankruptcy an applicant is required to pass the means test. The policy of the means test is to reserve chapter 7 bankruptcy protection to debtors who really need it and cannot afford a chapter 13. A chapter 13 bankruptcy compels individuals to make monthly payments to creditors under a bankruptcy court approved payment plan. The payments made under the payment plan allow creditors to receive at least partial payment for the credit due. On the other hand, a chapter 7 does not necessitate any monthly payments under a payment plan. Instead a chapter 7 bankruptcy will sell the borrower’s assets and use the proceeds of the sale to pay back creditors. Before applying for bankruptcy applicants should always consult a knowledgeable Tampa bankruptcy lawyer to establish which form of bankruptcy may be best for their situation. Applying for the wrong bankruptcy chapter could result in delays and have grave consequences.
In order to move forward with a chapter 7 bankruptcy the debtor will need to satisfy the means test. For most debtors the means test is a complex and time consuming procedure. The chapter 7 test contains several steps and demands an understanding of chapter 7 bankruptcy law. The debtor must have a comprehensive understanding of the laws relating to how income is calculated under the means test and which accounts are deemed as unsecured and non-priority. The majority of individuals seeking bankruptcy protection do not have the training required to understand all of the nuances of this bankruptcy law and will consult a Tampa bankruptcy attorney for help. An experienced Tampa bankruptcy lawyer can review all of the applicant’s financial documents and ascertain if the applicant satisfies the test. If eligible under the means test the Tampa bankruptcy attorney can prepare the debtor’s application and submit all necessary documents on the client’s behalf.
If you are considering filing for chapter 7 and have questions you should contact Florida Law Group for support. One of our qualified Tampa bankruptcy attorneys will answer all of your bankruptcy questions in a free and confidential consultation.
Florida Law Group has served as a dependable source for information regarding a Tampa Bankruptcy Lawyer for many years. For dependable answers and advice on finding a reputable Tampa Bankruptcy Lawyer visit our website today.
Since 2010 Florida Law Group has helped thousands of people in finding helpful information about a Tampa Bankruptcy Lawyer. By providing valuable information to our readers, we help those in need of legal counsel find a reputable Tampa Bankruptcy Lawyer.
