Bankruptcy is a tool that can allow a person who is facing overwhelming debt to get a fresh start and rebuild their financial future. When it is time to consider bankruptcy, the debtor will have to take a means test, which aims to determine whether the individual is eligible for Chapter 7 bankruptcy or Chapter 13 bankruptcy. The means test assesses whether the debtor’s income is less than the average family income in the county they reside. So, in Rockland County as of 2016, the average household income was $86,134. If the individual’s household income is less than that, they may be eligible for Chapter 7 bankruptcy.
Chapter 7 bankruptcy allows a debtor to discharge certain debts by liquidating some of their assets. It is important to note that only certain debts can be eliminated in a Chapter 7 bankruptcy. The debts that can be erased include credit card debt, personal debt, medical bills, utility bills, and more. However, not all debt can be erased through bankruptcy because they are considered nondischargeable debts. Some debts that can’t be erased include some taxes, spousal maintenance, child support, criminal court debt, and debt that was incurred by fraud.
Bankruptcy can be incredibly beneficial to anyone struggling to repay debt. If you have questions, contact our firm today.
Matters related to bankruptcy and estate planning are very significant in one’s life and require the services of an experienced attorney. Our firm proudly serves clients throughout Rockland County and New York State. If you need effective legal guidance, contact Koplen Law today to schedule a consultation.