BANKRUPTCY UPDATES

• Taking Your Credit Score from Bankrupt to Perfect 10 (May 21, 2012)
• Music Storage Website MP3Tunes.com Seeks Bankruptcy Protection (May 22, 2012)
• Book Publisher Houghton Mifflin Harcourt Files for Bankruptcy (May 17, 2012)
• Las Vegas Tycoon Lists $500 Million in Debts in Bankruptcy Filing (May 15, 2012)
• Nassau Broadcasting Sells its Assets in Bankruptcy Court (May 22, 2012)

Low Income Assistance

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.

If you are struggling financially, and would like a free bankruptcy consultation, fill out the brief form below.

Low Income Bankruptcy Features

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:

• There are special bankruptcy programs, such as Chapter 7, specially designed for people with lower incomes. Unlike other debt relief options that require repayment plans or lump sum payments, Chapter 7 may help you clear your debt for a relatively low cost if you are eligible. 
  
• Typically, bankruptcy courts require a fee in order to file for bankruptcy, but this fee can sometimes be waived if you have a low income. Ask your lawyer for more advice on court fee waivers.
• Getting things right the first time can save you money in the long run, so it might be a good idea to consult an attorney before trying to file for bankruptcy yourself. It may be a wise financial choice in the long run.

Chapter 7 Bankruptcy for Low Income Filers

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.

Bankruptcy Benefits for People with Low Incomes

The types of assistance that bankruptcy may be able to provide for low income individuals include:

• It may eliminate most or all of your debts.
• It may stop debt collectors from harassing you, and may stop wage garnishment.
• It may help restore your utilities, including water, gas, electric, and trash services.

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, contact a local attorney today to learn more about discharging your debts through personal bankruptcy.