Kentucky residents who have fallen on difficult financial challenges may be interested in learning about chapter 7 bankruptcy. This is an option that gives you a fresh financial start by essentially liquidating your assets and using that money to wipe away the majority of your debts. But, it is reserved for only some residents who are struggling with debt, and there are certain criteria that must be met in order to utilize it.
The most important qualifier for chapter 7 bankruptcy is your income level. If your average income over the past six months is higher than the state median, you are considered to have enough money to pay off your debts via chapter 13 bankruptcy. You must calculate all your monthly income, including wages, rents, child support, dividends, workers’ compensation and other sources of revenue. It is important to note that income does not include Social Security retirement benefits or tax refunds.
There is also a time limitation on filing for bankruptcy. Specifically, if you have filed for chapter 13 in the past six years or for chapter 7 in the past eight years, you cannot file again until that timeframe has passed. Additionally, if you filed for either form of bankruptcy in the past 180 days and the case was dismissed, you must wait to file again.
These are the very basics of qualifying for chapter 7 bankruptcy. If you fit these criteria, it may be beneficial to speak with an attorney to make sure you fit all other criteria as well.