Qualifying for Bankruptcy

Looking at Your Options for Debt Relief

Everyone can file for bankruptcy. Whether or not you qualify depends on the type of bankruptcy you file for, how much debt you have, how much money you make, and any assets you may own. You may not be aware that there are two different types of bankruptcy that you can file for. Chapter 7 bankruptcy discharges all or most of someone's debt, while Chapter 13 bankruptcy helps someone set up a repayment plan to pay off a portion of their debt, and discharges the remainder. To find out more about the different types of bankruptcy, contact our firm today. There is also Chapter 11 bankruptcy, which is similar to Chapter 13, but for businesses and corporations that need to pay off their debts.

Chapter 7 vs. Chapter 13

While Chapter 7 bankruptcy may seem like the easiest way to deal with your debts, it is not for everyone. To qualify for Chapter 7, you will be submitted to a "means test." A means test determines whether or not you have the means to pay off a portion of your debt. This is determined by comparing your monthly income to your state's average monthly income. If you are below the state's average monthly income, you will likely qualify for Chapter 7. If not, you will most likely have to file for Chapter 13 bankruptcy instead. If you file for Chapter 7, some of your assets may be liquidated in order to pay off a portion of the debt, before discharging the rest. Under Chapter 13, you will have a structured repayment plan, involving one monthly payment that you can afford, and at the end of a 3 to 5 year term, the remainder of your debt will be forgiven. As you can see, both types of bankruptcy have their benefits, and determining which one is best for you will depend upon your unique circumstances.

Dedicated Legal Assistance

At Price Law Group, The firm can help you determine what type of bankruptcy you qualify for, and can help you file your claim, as well as represent you every step of the way. The firm can represent you in bankruptcy court and negotiate with your creditors in order to minimize the damage that will be done to your credit and financial reputation. The firm has over 20 years of experience handling bankruptcy cases and can help you with credit repair, wage garnishment, and more. The legal team has the experience you are looking for in a bankruptcy attorney.