When struggling financially, it is normal to spend time looking at available debt relief options. What many Massachusetts residents may find, though, is not all debt relief options are created equal. Some may seem like a good idea but really are not, and others may seem extreme but are actually worthwhile. Take Chapter 7 bankruptcy, for example. It may seem like a drastic approach toward gaining financial freedom, but it may be the best approach when looking at the bigger picture.

Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy. If one’s petition receives approval, some assets may need to be sold to pay down creditors, though many may be kept. Every case is different. After that, all qualifying debts may be discharged — meaning one will no longer be responsible for paying back those specific creditors. 

Not everyone who wishes to file for Chapter 7 relief will qualify. To find out if this form of bankruptcy is an option, it is necessary to perform the means test. This is a simple test that compares one’s income to the state’s median income level. If one’s income level is lower than the state’s current median level, Chapter 7 may be pursued. If one’s income level is above the median, Chapter 7 may only be an option if one’s disposable income is deemed insufficient.

Figuring out if one qualifies for Chapter 7 relief may seem like a complicated thing, but it really is not. With assistance, Massachusetts residents can quickly learn if this is an option for them. If it is, legal counsel can help one file the appropriate petition and even provide representation in court. If it is not, legal counsel can help one pursue the debt relief option that best fits one’s circumstances.