Chapter 7 is the most popular bankruptcy filed in the United States. The main reason is because it reflects the situation of most American people. Filing chapter 7 bankruptcy is beneficial to families or individuals with low assets and high unsecured debts such as
- Credit card debts
- Medical bills
- Payday loans
Credit card debts
If you are unable to repay a loan for the legally accepted reasons, then filing a chapter 7 bankruptcy could help you clear the debt, giving you a fresh start. In most cases, you are eligible for chapter 7 bankruptcy which involves evaluation of the debt amount and your income amount. In most scenarios, where the income is lower than the state median for your household, then you will qualify for chapter 7 bankruptcy. The median income for a household of 2 is $57,428 and $43,202 for a household of 1. In case your income exceeds these income thresholds, then the court will rule that you can repay some of your creditors. In such a case, you can file chapter 13 bankruptcy.