How Can Individuals Legally Get Out Of Debt?

Debt is something most everyone deals with at some point in their lives. When debt becomes overwhelming, it can lead to problems in a person's life. Thankfully, there are legal ways individuals can overcome their debt and find financial freedom. With this information, individuals will better understand what they can expect from chapter 7 bankruptcy.

What Is Chapter Seven?
Those who have mounting debt they cannot seem to pay off are urged to see if they qualify for chapter 7 bankruptcy. To qualify, a person must pass mean's testing. Mean's testing ensures the debtor's income does not go over the median income of the state.

Once a person has been approved, a court-appointed trustee is placed over the case. This person is in charge of accounting for all of the assets owned by the individual so it can be decided which ones will be liquidated to pay off the debts.

There are certain assets that are exempt, such as the residential home. The court-appointed trustee has the power…