Sincerely, if you are asking yourself this query, you are asking the wrong question. The query is not whether you can qualify, but rather which chapter you can qualify for. As long as it can be demonstrated that you have substantial debt, your bankruptcy petition will not be denied. Instead, the qualifying procedure will be used to determine which chapter is best adapted to handle your individual case.
Before determining this, however, it is essential that you determine whether what you are doing is truly the best option for you. In any case, the ability to file for bankruptcy does not necessarily imply that you should. In fact, being in debt does not always necessitate filing for bankruptcy. It is essential that you give each of the available alternatives the consideration they merit, as they may all be superior alternatives to your current situation.
If, after a comprehensive examination of your situation, you determine that you are indeed prepared to file for bankruptcy, the best thing you can do is research the various bankruptcy chapters available to you as a person seeking to file for bankruptcy. Chapters are also available to businesses that are struggling with debt, but for the purposes of this article, we will focus on personal bankruptcy and not business or corporate bankruptcy.
Chapter 7 is one of the most prevalent bankruptcy chapters. This is commonly known as a """"straight bankruptcy"""" or """"straight liquidation."" By filing this chapter, you will be able to discharge nearly all of your debts and move on to a brighter financial future almost immediately. This is accomplished by liquidating your assets and paying off your creditors with the proceeds. Not all assets will be liquidated (there are exemptions allowed by state law), but those that qualify for liquidation will be utilized. The conclusion? You're debt free.
Remember that this chapter is not a free-for-all, and not everyone who wishes to file will be permitted to do so. In order to distinguish those who genuinely require this chapter to regain their financial footing from those who could theoretically afford to pay off their debts, all Chapter 7 filers must pass a means test. The means test is elementary. Essentially, it will compare your family's average annual income to the state's median income for families of your size. If your income falls below this average, you will be eligible to file for Chapter 7 bankruptcy. As easy as that. If, however, it is above, there is still hope; there are methods to demonstrate the ratio of your disposable income to your debts in an effort to demonstrate whether you can or cannot pay off the debts you are currently saddled with.
Those who do not qualify for Chapter 7 bankruptcy will almost certainly be able to petition for Chapter 13 bankruptcy. This chapter of bankruptcy has much less stringent requirements. Under federal law, an individual may petition for Chapter 12 bankruptcy if their debts do not exceed a certain threshold. Secured debts must not exceed $1,081,400, and secured debts cannot exceed $360,475.
Moreover, it is essential to note that the laws governing bankruptcy eligibility were modified in 2005, albeit only slightly. It was determined that, for the most part, those who were able to file for Chapter 7 prior to the statute's revision were still able to file for that chapter of the law. If they were ineligible for Chapter 7 bankruptcy, they were almost certainly eligible for Chapter 13 bankruptcy.
Still have concerns about bankruptcy qualifications? Consult with a local San Antonio bankruptcy attorney with experience. Complex bankruptcy law does not have to be insurmountable. The best thing you can do to gain a deeper understanding of your case and determine the best course of action is to schedule an appointment to discuss your specific situation.
" - https://www.affordablecebu.com/
