The crushing weight of debt can hold you down. If you are in this position, you might decide that you need to file for Chapter 7 bankruptcy. This possibility should be carefully considered so you can ensure that it is the right option for your needs. There are actually several things that might mean that a Chapter 7 filing isn’t the right option for you.

One thing to remember about a Chapter 7 bankruptcy is that you have to pass the means test. This determines whether your income and assets are too high to file for the liquidation bankruptcy. If they are, you need to file a Chapter 13 bankruptcy, which means that you will have to repay some of the money owed by paying the trustee on a set schedule.

Another thing that can mean this chapter isn’t right for your needs is if you are judgment-proof. This means that you don’t have anything that creditors can claim. If you don’t own a home, vehicles, other considerable assets or have a hefty income, you might do better by just allowing the unpaid bills to be left alone. Make sure that you don’t have anything that the creditors can claim.

A third thing that might preclude you from Chapter 7 bankruptcy is if you made fraudulent charges on a credit card. There are a host of things that can point to this occurring. A couple of these are that you purchase luxury items just prior to filing for bankruptcy or you withdraw large advances of cash from the card.

You need to ensure that you are protecting your rights and assets if you plan to file Chapter 7. This can set you up on the best footing possible.