In an uncertain economic environment, millions of Americans seek low income assistance every day. If you’re being hounded by creditors because you’ve fallen behind on bills, personal bankruptcy may be able to help you restore your financial health.
While personal bankruptcy is accessible for most Americans, some think having a low income is a hurdle that may prevent them from filing for bankruptcy. This couldn’t be further from the truth.
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Filing for bankruptcy may help individuals to discharge their debts and free themselves from the grasp of creditors. Here are a few bankruptcy tips for people with low incomes who need assistance:
Chapter 7 bankruptcy is commonly used by individuals with little regular income who need real debt relief. Eligibility for Chapter 7 bankruptcy is determined by a Chapter 7 means test. If your income level is below your state’s median income, you’ll likely qualify for this powerful type of bankruptcy.
In Chapter 7, most of your debts relating to credit cards, medical bills and personal loans may be discharged. Plus, if you qualify to file, much of your property could be protected from forced sale depending on your state's laws. This means that your creditors can’t get their hands on your important belongings.
Exempt property often includes your home, car, household belongings, clothes, keepsakes and work items. In addition, Social Security benefits, public assistance funds, and Veterans benefits are also typically exempt, which means creditors won’t be able to touch them.
However, the Chapter 7 exemptions vary from state to state. If you want to take care to protect your property, you may want to speak with someone familiar with the bankruptcy laws in your area.
The types of assistance that bankruptcy may be able to provide for low income individuals include:
Low income assistance programs vary by state, but if you are in emergency need of financial help, contact your local state assistance program.
If you are under pressure from creditors and you fear you won’t be able to pay them off, connect with a local attorney today to learn more about discharging your debts through personal bankruptcy.