Tuesday, December 13, 2016
Who Is Eligible To File A Chapter 7 Bankruptcy?
Most things in life have requirements that must be met before a person can participate. For instance, if you want to drive a car you have to pass the driver’s test first and get your driver’s license. If you want to vote, you have to 18 and then register to vote. And, if you want go to school or get a job, you have to fill out an application first and be admitted or hired on as an employee. But the same is not necessarily true for those that need to file bankruptcy. While there are some requirements, they are not difficult to reach, and people who need help with their bills can usually find it in the process of filing bankruptcy.
There are two types of consumer bankruptcy cases; a Chapter 7 and a Chapter 13. Chapter 7 is the most preferred type of case, because it does not last as long and you can wipe out all of your unsecured debt in a Chapter 7. In contrast, a Chapter 13 is longer and will require you to pay back some of your unsecured obligations. So, who is eligible to file a Chapter 7 bankruptcy? The following information sheds some light:
• An individual, or couple, who have more debt than they can pay.
• An individual, or couple, who show that their disposable income amount is such that there is nothing left over each month to put towards any portion of their unsecured debt.
• A sole proprietor who is in business for himself, with debts being held personally rather than in the name of a company.
• A self-employed person who does not have enough money to stay on top of all of their debts.
The key in a Chapter 7 case is the means test, and that is the test that will show how much disposable income you have to put towards unsecured debt. If there is nothing left from your income, after your secured debts are paid each month, you should qualify for a Chapter 7 case. Our team of experienced debt management and bankruptcy professionals knows how to perform the means test, and can do this for you so you know what type of case you qualify to file. Call us today for help with your finances, so you can get a fresh start.
For help with managing overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.