Am I Eligible To File For Bankruptcy?
Whether or not you are eligible for bankruptcy depends upon the type of bankruptcy you are applying for. Chapter 7 and Chapter 13 bankruptcies require debtors to fulfill certain requirements in order for their cases to be approved by the court. Both types of bankruptcy cases require credit counseling prior to filing and disclosure of certain documents. There are also other statutory limitations on the frequency of filing certain bankruptcy cases, and for those that have had a case dismissed there may be other considerations.
At the Law Office of Allan E. Dunaway PLC, we carefully evaluate your eligibility before pursuing either option, and then offer all options that may be available. Some firms treat bankruptcy as “one case fits all” for their clients – we do not. Our goal is to find the right bankruptcy option for your circumstances that maximizes benefits and will serve clients best in the long term.
Chapter 7 Eligibility Requirements
There are a number of requirements, but generally in order to qualify for Chapter 7 bankruptcy, you must pass the “means test.” This is basically an income test to determine whether a person has “too much income” to file a Chapter 7. Additionally, a Chapter 7 can only be filed eight years after a previous Chapter 7 was filed and a bankruptcy discharge was granted.
If the means test precludes a Chapter 7 filing, bankruptcy relief may be available under Chapter 13, which can be viewed as simply a repayment plan.
Chapter 13 Eligibility Requirements
To file for Chapter 13 bankruptcy, you must prove that you have sufficient, regular income that will allow you to repay certain debts. Additionally, your debts cannot be above a set cap for both secured and unsecured debts, which are adjusted every three years to take inflation into account. Most consumers will never get close to those maximum debt levels, so Chapter 13 is generally available to any wage earner.
Chapter 13 can last from three to five years, and the payment is based on a minimum set of criteria. But the core difference between a Chapter 13 and a nonbankruptcy debt repayment plan is that a Chapter 13 requires creditor cooperation – in other words creditors are bound by what the bankruptcy court approves. A Chapter 13 puts the consumer in control and levels the playing field with creditors. We work with you to fully understand your financial situation and develop a plan that meets the court’s requirements.
Contact Our Attorney To Discuss Your Eligibility
If you are wondering, “Am I eligible to file for bankruptcy?” only a qualified and experienced attorney can give you the information you need to make an informed choice. Bankruptcy involves a number of complicated factors, and the evaluation of the financial information requires an expertise in the intricacies of the Bankruptcy Code.
If you are interested in exploring your bankruptcy options, contact a law firm with extensive debt relief experience to guide you through the process. Call the Law Office of Allan E. Dunaway PLC, at to schedule a free consultation, or contact us online. We have offices in Louisville, Kentucky, and Jeffersonville, Indiana.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.