Do I Qualify for Chapter 7 Bankruptcy?
Coming to the decision that filing for Chapter 7 bankruptcy is the best solution to resolve your financial woes can be difficult to finally come to terms with. Once you subsequently choose to make this weighted next step, you will want to determine if you are eligible for Chapter 7. It can be a real let down to begin thinking of the idea of financial relief only to find out that you do not meet the qualifications. Let Brandy Austin Law Firm, PLLC provide you with the legal consult you require surrounding your financial affairs. Bankruptcy can be hard to come to terms with, but once you do, you will want to make sure that the process goes smoothly.
Can Bankruptcy Help Me?
Prior to filing for bankruptcy, you will want to make sure that you have assessed all available financial solutions. If you find that none of the options offer you with the debt/financial relief that you require, it may be in your best interest to file for bankruptcy. Bankruptcy can help you to eliminate debt that you have been unable to get control of because you are not able to keep up with your payments. It is important to highlight that filing for bankruptcy cannot relieve you of paying for specific types of debt:
- Student Loans
- State/Federal Taxes
- Child Support
- Fines or restitution
You may find that there are some benefits to filing for bankruptcy. Although it can be a difficult decision to come to, it can certainly help relieve stress you may be carrying. This is often from the constant burden of shouldering financial debt that you cannot afford. It will be important to obtain an attorney to help support you through the complexities of filing for bankruptcy and ensuring that you have made the best decision based on your specific situation.
Determining Your Eligibility
In order to be eligible for Chapter 7 bankruptcy, you must meet specific requirements. Criteria you must satisfy so that you may qualify for Chapter 7 will include:
- If you have filed for bankruptcy in the past, you must wait 8 years before you can file for bankruptcy for a second time
- You will need to meet with a credit counselor prior to filing for bankruptcy. Together, you will go over your debt to income ratio and draw up a possible repayment plan.
- You must pass a “Means Test” which looks at your debt to income ratio over a six-month period. You have a higher probability of passing the means test if your income does not meet the average income in the state that you live in. If your income is higher, there will be additional questions for you to answer. If you do not qualify, it may make sense to file for Chapter 13, which allows for you to make payments towards your debt over a period of 3-5 years.
If you do not meet the criteria for Chapter 7, there are other bankruptcy options we can pursue with you. Our many years of experience will help you feel confident in knowing you are in the best of hands. Call Brandy Austin Law Firm today to speak with a member of our legal team to answer your question, “Do I qualify for chapter 7 bankruptcy?”