Debts are one of the worst burdens on any human being on this earth. When you are an individual who is facing a financial crisis or got captured with unsecured debt, then it is the time to give a thought to filing Chapter 7 Bankruptcy.
Are you loaded with your financial burden and unable to pay off?
Want to wipe out the slate and restart your life with no debt?
Chapter 7 Bankruptcy can be helpful for you in such cases. Chapter 7 Bankruptcy is the most common type of bankruptcy in the U.S in which most of your properties get sold to repay your debt. In case you don’t have any properties with you to be sold then the court forgives your unsecured debts so that you can start a fresh new chapter of your life.
To know more details about Chapter 7 Bankruptcy click here.
As there is an eligibility criteria set for everything, Chapter 7 Bankruptcy has some set of rules to follow while anyone wants to file it. Not everyone is qualified to file Chapter 7 Bankruptcy, especially when your income is high. As high income group people fall under Chapter 13 Bankruptcy, the court doesn’t allow them to file Chapter 7.
For them, Chapter 13, Bankruptcy comes into the picture.
Are you wondering whether you are eligible for Chapter 7 Bankruptcy? Then you are in the right place. This article will help you understand whether you qualify for Chapter 7 Bankruptcy or not before you set your mind to file it.
#1 You should not be a part of LLC, corporation or partnership firm
Chapter 7 Bankruptcy is exclusively for those who are individual or having a sole proprietorship of any small business. If you are a part of any corporation, partner in any firm or Limited Liability Company, then you can’t file for Chapter 7. You have to seek the guidance of any Bankruptcy lawyer as they have a different process.
#2 You have to qualify Chapter 7 Bankruptcy “means test.”
Before you file Chapter 7, you have to qualify the “means test”. The “means test” is to compare your monthly average income for a period of six months against the median of the state you live in. If you fall under the median level, then undoubtedly you qualify for Chapter 7. If your income is more than the median then you can’t file it.
Please remember that not everybody has to go through the means test and the median figures are different from state to state.
#3 You have to complete a pre-bankruptcy credit counselling course
Government-approved credit counselling agency organizes a pre-bankruptcy credit counselling course. You have to complete it within six months from the date you are going to file for Chapter 7 Bankruptcy. You have to receive a credit counselling certificate to file it with the court.
#4 You have not had any previous bankruptcy discharge
If you have Chapter 7 Bankruptcy discharge within a period of 8 years, then it is legally not allowed to file another one. The Bankruptcy Law prevents people from filing repeated Chapter 7. Keep in mind that the period starts from the date of filing Chapter 7 not from the date you received the discharge of bankruptcy.
#5 You shouldn’t have Bankruptcy dismissal in a period of last six months
The court doesn’t entertain your filing if you practice any of these – fraud filing of Chapter 7 Bankruptcy, violate any of the court’s order or abuse the system of bankruptcy. In case your filing gets dismissed within the last six months then you can’t file another one. You have to wait for the stipulated time.
Here are the eligibility criteria you have to check before making your mind file your next Chapter 7 Bankruptcy. If you have doubts and need more personal attention to your queries, you should contact Chapter 7 Bankruptcy Attorney Tucson.
Tucson Chapter 7 Attorneys are the right person to guide you for the exact process to follow. They can evaluate your eligibility to file Chapter 7 Bankruptcy taking your debts and financial situation into consideration.