What can credit counseling do for you?

If you recently looked into filing for bankruptcy, you may have heard the term credit counseling.

Before you will be able to file for bankruptcy, you are required to take an approved credit counseling course as a way to determine if bankruptcy is your best option. Credit counseling is mandatory when applying for both Chapter 7 and Chapter 13 bankruptcy even if a payment plan will not be feasible for your situation. Once you complete the course you will be given a certificate stating you completed the course. In some instances a repayment plan is proposed; if so, you must submit this to the court as well. After your bankruptcy begins, you will be required to take another course teaching you financial management skills.

The new skills you learn during credit counseling will put you on your way to financial freedom.

Call the law office of Attorney Erwin F. Meiers, III to discuss your bankruptcy and credit counseling options.

Determining Chapter 7 eligibility with a means test

Are you considering filing for bankruptcy and keep seeing the term "means test?" The means test was developed to determine if you are eligible for Chapter 7 bankruptcy and to aid in separating Chapter 7 eligible persons from those who are not eligible.

The means test is a series of questions involving income and expenses. Qualifying begins with determining your income and whether it is higher or lower than the median of the state you reside. If it is lower, you pass and are ready to file for Chapter 7. If its higher, there are a few more steps to determine whether you pass. Determining your excess income and your debts is crucial at this point as you need to have more debt than income in order to pass. Keep in mind that the medians change from state to state and include differed levels of allowed expenses. In the event that you fail the Chapter 7 means test you could still qualify for Chapter 13.

So, you passed the means test, should you file?
As with many legal matters circumstances can vary and its important to consult an attorney before deciding to file. However, determining your filing eligibility using the means test is an important step in the process. The means test uses information needed to fill out bankruptcy forms and will help you regardless of if you pass or fail.

As with any legal matter you should discuss all of your options with your attorney and make a fully informed decision. Contact the law office of Erwin F. Meiers today.

Experiencing increasing calls from debt collectors?

Are incessant phone calls from debt collectors and credit counseling companies driving you nuts? Are you stuck in a rut and the bills are piling up?

Have you considered bankruptcy?
Bankruptcy is a debt solution available to help you start back on the track to financial freedom.

What is bankruptcy?
Bankruptcy is an option available to consumers who cannot afford to repay debts owed. The most common type of bankruptcy filings are Chapter 7 and Chapter 13. Chapter 7 is a form of bankruptcy in which the debtor must liquidate their assets. Whereas, Chapter 13 allows the debtor to retain their assets while making scheduled payments on the debt.

How will it affect my credit score?
While filing for bankruptcy will appear on your credit report, it doesn't mean your credit has been compromised entirely. With good payment history after bankruptcy you may be eligible to apply for lines of credit after only a few years.

As with any legal matter make sure you obtain professional advice prior to making a decision. You have questions, we have answers. Contact us to discuss your bankruptcy options.