Do I Qualify for Chapter 7 Bankruptcy?
Are you falling behind on your bills and considering bankruptcy? It can be challenging to understand all of the rules. Many people consider Chapter 7 bankruptcy because, if qualified, it can allow for debt to be erased completely. This means you will not have to pay back qualified debts.
Here is a nutshell of Chapter 7 bankruptcy rules:
Eligibility for Chapter 7 bankruptcy can be determined by the “means test.” This compares your income and expenses to the standard for your area, as decided by the IRS.
- This means test determines if your income is less than the median income for a family of your size in your state.
- This means test determines whether you should be able to make minimum payments to creditors.
An experienced bankruptcy attorney can walk you through the means test to help decide if you are eligible for Chapter 7 bankruptcy.
You are unable to file for Chapter 7 bankruptcy if you meet the following conditions:
- You’ve received a bankruptcy discharge in the last 6 to 8 years.
- A previous bankruptcy was dismissed in the last 180 days because of violation of a court order, the filing was fraudulent, or you dismissed the case after a creditor asked for relief from the automatic stay.
- You have enough income to pay back debts.
In order to file for Chapter 7 bankruptcy a number of forms will need to be filled out. You will need to supply information about the following:
- Debts
- Property
- Income
- Living expenses
- Money you’ve spent in the last 2 years
- Property you’ve owned or sold in the last 2 years
- Listing of exempt property (such as furniture, clothing, your car, etc.)
Things to remember when filing for Chapter 7 bankruptcy:
- The debts that you owe and the property that you own are under the supervision of the bankruptcy courts. You can’t pay off pre-bankruptcy filing debts without court consent.
- When you file for bankruptcy, an “order for relief” is put into effect. This is an automatic stay that temporarily keeps creditors from trying to collect what you owe. This means that during this order for relief, creditors will not be able to garnish wages, take your property, or call you.
What debts are discharged? All debts will be discharged, except for the following:
- · Debts that the court lists as dischargeable. This can include debts that a creditor objected to, such as fraudulent debts.
- · Debts that survive bankruptcy. This includes student loans and most tax debts.
For bankruptcy help, call Geygan & Geygan
It is important to discuss your personal situation with a qualified bankruptcy attorney. A qualified attorney can help assess your financial situation and determine if you qualify for Chapter 7 bankruptcy.
If you are looking for an experienced law firm to guide you throughout a bankruptcy case, contact Geygan & Geygan. We will analyze your case, answer your questions and guide you through the bankruptcy process. Call (513) 793-6555, or email thomasjr@geygan.com. Our office is located in the Kenwood area of Cincinnati. CALL NOW!