If you are considering filing for Chapter 7 bankruptcy, you might have a few questions about the way the process works. Liquidation bankruptcy does not have to be intimidating; in fact, it helps scores of people get back on their feet financially every year. Instead of suffering through ongoing money woes, you might benefit from considering Chapter 7 bankruptcy for your own financial situation.
One of the purposes of Chapter 7 bankruptcy is to provide filers with a fresh start. However, there are some eligibility rules; Chapter 7 is not available to everyone automatically. Individual debtors must qualify under a "means test," which evaluates your assets and holdings against your liabilities. After going through that evaluation, you must usually complete credit counseling during the 180-day period before you officially file. This counseling may lead to the development of a debt management plan, which must be submitted to the Massachusetts courts.