If the amount of debt you owe keeps rising each month, and if you have no extra money to use to even make the minimum payments on your debt, you should consider looking into bankruptcy. Chapter 7 bankruptcy could be a good option for you, as it can help you eliminate debts instantly. Here are three ways you can know that this branch is the right solution for you to use at this time.

You Qualify for It

Using Chapter 7 bankruptcy is not an option for everyone that is in debt, simply because not everyone will qualify for it. There are several different conditions that must exist in order for a person to qualify, but the main condition involves the amount of income a person earns. To qualify, a lawyer would need to compare your income to the average income of your area. Every state has an average income, and your lawyer will know what this amount is for the year you would like to file. As long as your income is not over this amount, you should have no problem qualifying for Chapter 7 bankruptcy.

It Would Eliminate the Majority of Your Debts

The second way to know that this is the right solution is if filing for Chapter 7 would eliminate most out your debts. To find out if this is the case, you would need to show a lawyer exactly what debts you have. If your debts are primarily qualifying debts, which includes credit card bills, you can assume that bankruptcy would eliminate those. If bankruptcy would eliminate most of the debts you currently have, then this is probably a good option to evaluate and consider using.

You Would Not Lose Any Major Assets

With Chapter 7, there is always a risk of losing assets you currently own. A lawyer can review all your assets, along with all the other details of your case, and will be able to tell you how the bankruptcy case would affect those assets. Filing for Chapter 7 could be a great solution if you will not have to lose any major assets you currently own.

You can find out if you qualify for Chapter 7 and what the effects of it would be by visiting a bankruptcy lawyer. Many bankruptcy lawyers offer free initial visits with clients, which means you can receive legal advice for free if you choose a lawyer that offers free consultation visits. Contact your local bankruptcy attorney services today to learn more.