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.
