Does Bankruptcy Mean You Are Broke?

Absolutely not.  There are varying types of bankruptcy for varying levels of debtors.  Under a Chapter 7 bankruptcy an individual qualifies if their monthly income barely meets or is less than their monthly expenses. Your discretionary income, as opposed to the number on your paycheck, is the determining factor for this type of bankruptcy. Under a Chapter 13 bankruptcy an invidual negotiates a court-supervised repayment plan with its creditors. Under both plans the goal is a discharge, which is the legal absolving of a debt.

 

There is a bankruptcy plan for every potential debtor.  The Fears | Nachawati Law Firm is experienced and adept at handling bankruptcies at every income level.