Factors That Affect Qualifying For Chapter 7 Bankruptcy

Most people can file for bankruptcy if they need to, but they might have limits on which branch they can use. If you need debt relief and prefer Chapter 7, you will need to find out if you qualify. To determine the answer to this question, you must meet with a bankruptcy lawyer. Your lawyer can explain the main factors that affect a person's eligibility for Chapter 7, and here are the primary three.

Your Income

The first factor that matters is your income. To use Chapter 7, you cannot make more money than the average person in your state, you cannot use this branch. This branch is designed for people with lower incomes. If you make too much income, you might want to pursue a different branch. You can talk to your lawyer to learn more about the income test you must take to use Chapter 7. Your lawyer can also tell you what income you must include when performing this test. If you pass the test, you can use Chapter 7.

Your Debts

The second factor that affects your eligibility is your debts. Now, Chapter 7 does not have a debt maximum. In other words, you can owe any amount of money to use Chapter 7. Chapter 13 has debt limits, though. The main thing that matters with your debts is the types you have. If you have the types that receive a discharge in Chapter 7, filing for this branch might be beneficial. If you have debts that will not receive a discharge, you might want to consider using a different branch.

Your Previous Filings

The other factor that affects your ability to file for Chapter 7 is your previous filings. Have you filed for bankruptcy before? If so, you must wait for at least six to eight years to refile. The exact wait time depends on which branch you filed in the past. You must also wait for 180 days if you filed a bankruptcy case that the court dismissed. If the court dismissed a bankruptcy case, you cannot instantly refile. You must wait for at least six months. If you have questions about the timing of your filing, talk to a bankruptcy attorney.

Chapter 7 is a great debt-relief tool to consider if you owe a lot of money in debts. If you would like more details about it, contact a local bankruptcy attorney today.

About Me

On Your Side During Bankruptcy

Declaring bankruptcy is not easy. Deciding that you have no other way out from underneath your debt and making the call to actually file bankruptcy paperwork is challenging from a mental and emotional perspective. But do you know what can help? Having a good bankruptcy attorney on your side. An attorney can help you navigate the sometimes complex legal jargon associated with bankruptcy filings. They can also help you assess your situation and determine which chapter you should file under. Learn more about bankruptcy attorneys and the guidance they offer on this website. This is a good place to start if your debt is getting unwieldy.




Latest Posts

7 April 2022
Are you interested in using bankruptcy because you have a lot of credit card debt that you need to get rid of? While Chapter 7 bankruptcy will complet

1 November 2021
When you face difficult financial issues, you might decide to turn to a professional for help. You can turn to debt consolidation companies for help o

14 June 2021
Chapter 7 bankruptcy law establishes a threshold for filing. The threshold is half the median income for the state the petitioner lives in, and that m