Qualifying for a Chapter 7 Bankruptcy

People who contemplate filing for bankruptcy often do so because they have amassed a considerable amount of debt that they cannot pay. They do not want to spend every penny they earn paying expenses like medical bills, credit card bills, and other costs. They would rather have money to put into savings for retirement and other life events.

When you consult with one of the local bankruptcy law firms in Pasco County area you’ll learn a lot about the bankruptcy process. Filers might wonder if they qualify for total liquidation of most or all of their debts. You might wonder if you qualify for Chapter 7 or Chapter 13. All of these questions can be answered during a consultation with a bankruptcy attorney.

You might also wonder if you’ve filed for bankruptcy in the past if you are qualified to file a second time. Most states limit how often you can file for Chapter 7 bankruptcy. Most states require there be a period of seven to eight years between filings, but your attorney can help you determine if you are able to file a second time.

There are also income qualifications for Chapter 7 filers. This type of bankruptcy is reserved for low to moderate income earners and not people who are considered wealthy or who earn a generous income. You must have a negative net worth and owe more money than you earn or have available to you in liquid assets.

Likewise, to be eligible for this type of bankruptcy, you must have debts that can be discharged by the court. Debts like back taxes, unpaid child support or alimony, and student loans are not forgivable in Chapter 7 bankruptcy. However, expenses like credit card and medical bills as well as defaulted rent might be eligible for discharge in a Chapter 7 filing.

By visiting the website of one of the bankruptcy law firms Pasco County locals you can find out more about Chapter 7 bankruptcy and schedule a consultation to discuss your case.

Be the first to like.
Be Sociable, Share!