DIY Bankruptcy Info
“Do I Qualify for Bankruptcy?”
After reviewing various debt relief options, have you concluded that bankruptcy is right for you? If so, you’ve probably reached one of the most important questions: Do You Qualify?
In the majority of cases, if you are struggling to pay your bills and you have not filed for bankruptcy in the last eight years, you should qualify.
One easy way that to determine whether or not you qualify for bankruptcy is to talk with an attorney. At DIY4Law, you can arrange a free, no-obligation consultation with an attorney today by filling out the form below.
Did you know that the US Bankruptcy Court recommends that individuals who are considering filing for bankruptcy talk to an attorney? Fill out the form below to talk to one near you today.
Qualifying for Chapter 7
The IRS sets the income levels in each state for people filing for bankruptcy.
The amounts allowed typically increase each year, sometimes twice a year.
CAUTION : The amounts shown on the table can actually be increased by about $1,000 to $1,200 when your living expenses are taken into consideration. The IRS table gives the income as a yearly figure. However, the bankruptcy income qualification test uses a monthly amount. So divide the amount in the table by 12 to get your monthly sum.
How Much Does It Cost To File?
According to that above median income document, if you were going to file bankruptcy in July, then you add up the total gross amount of money you earned, borrowed, or received during January 1st through June 30st of that same year. Divide that number by 6.
You then have your total monthly gross income.
Compare that amount to what the IRS table allows you to make. If the IRS table says you are allowed to make $3,800 – you can usually make up to $5,000 or below and still qualify.
Eligibility for Chapter 7
To qualify for relief under Chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity.
Subject to the means test for individual debtors, relief is available under Chapter 7 irrespective of the amount of the debtor´s debts or whether the debtor is solvent or insolvent.
An individual cannot file under Chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor´s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing.
There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling.
If a debt management plan is developed during required credit counseling, it must be filed with the court.
Still having questions? Call 877-231-7358 today.