Why To Use a Chapter 7 Means Test Calculator When Considering Relief

Introduction

Sometimes we might have questions regarding our debt situation and how to make ourselves debt-free. To get out of debt, there are numerous difficult stages to overcome. It is possible that you have passed one barrier and you are seriously thinking about bankruptcy. This is where you have to make a choice between Chapter 13 or Chapter 7.

Fortunately, you do not have to go through this experience forever, as there is a highly-effective and useful tool referred to as a Chapter 7 Means Test Calculator.

 How Do You Use a Chapter 7 Means Test Calculator?

Applying Chapter 7 bankruptcy generally means that you sell your assets so that you can pay your debts (read more about Chapter 7 bankruptcy here), and if it succeeds, all your unsecured debts are taken care of. It goes without saying that Chapter 7 is thought to be a highly extreme method of bankruptcy because it involves selling your entire assets, in addition to negatively affecting your credit score.

This is one of the reasons for which you have to be eligible for Chapter 7. In this situation, the Chapter 7 Means Test Calculator is very useful as it assists you to determine exactly that. In order to determine if you qualify for Chapter 7, these forms check factors such as your average monthly gross income, plus the amount of unsecured debt that you have.

Choosing Chapter 7 bankruptcy is a very crucial step to make, therefore going with a Chapter 7 Calculator will mean all the difference. Given below are three benefits of doing that.

 1) It will assist you in Knowing if you qualify for a Chapter 7

You must qualify because completing Chapter 7 dissolves nearly all of your assets. For that to happen, there are some eligibility criteria that you have to meet. All Law states that the biggest aspect is that you should have little to no disposable earnings.

It is important to note that the Chapter 7 Calculator considers your average monthly income, compared to the median average monthly earnings of a nearby house over a 6-month duration before your bankruptcy. In case your earnings are below the median, then you are a suitable candidate.

By using the Chapter 7 Means Test Calculator, you will be in a position to know if the same applies to you.

2) It will aid in navigating the process of filing for Chapter 7 Bankruptcy

Knowing if you qualify is not enough. It is equally vital that you understand the procedures for filing for Chapter 7 bankruptcy. As explained earlier, your credit rating will be extremely damaged by a Chapter 7 bankruptcy. So it is in your best interests to fully understand the filing process and well as the consequences.

Putting it simply, a Chapter 7 calculator will aid in knowing if you meet the requirements for a Chapter 7, in addition to some advice. Besides giving you choices regarding the next steps to take, for instance, a link to lawyers near you, a reliable Chapter 7 Calculator will also provide a link to a Chapter 13 Calculator in case you are not eligible for a Chapter 7. Though all calculators are automated, there are more advanced platforms that provide live and free advice regarding the next steps of the process.

 3)  Some Calculators will provide advantages and disadvantages and give you the opportunity to compare the options

Let’s assume that you qualify for a Chapter 7. But you haven’t yet decided which debt-relief options you will go with. You have not made up your mind if you will settle for debt settlement or debt consolidation. By using a Chapter 7 calculator which will provide you with the benefits and drawbacks of filing for a Chapter 7 in your particular case, you will be well informed to make a wise choice.

Finally, you have to fully understand the whole process and be well equipped to suitably assess the options on the table. After checking the procedure for filing for Chapter 7 or the stages of the debt settlement process, it is possible to see which one best suits you.

 Conclusion

Doubts arise when you are not sure which option is perfect for your personal finances. Though bankruptcy can be a frightening choice, it can also be the most reasonable for you.

If you are thinking about filing bankruptcy, by using a Chapter 7 Means Test Calculator will help you know if you are eligible and describe how to go about it, as long as you qualify. Most importantly, after knowing the advantages and disadvantages of Chapter 7, you will be able to compare this method of debt relief with other available options.

Using a Chapter 7 Calculator might not deal with all your doubts, but it is a massive step leading to more financial freedom.

Comments are closed