Learn The Basic Criteria You Need To Meet To File For Chapter 7 Bankruptcy

28 January 2015
 Categories: , Blog

If you are swimming in debt and are seriously considering filing bankruptcy, it is important to determine if you qualify for the filing or not. There are many people who make the mistake of assuming that anyone can file for bankruptcy if they want to. Chapter 7 bankruptcy is one of the most commonly filed forms of bankruptcy because it is the form that has some of the easiest qualifications.

Use the following guide to learn about the qualifications required to file for Chapter 7 bankruptcy:

Have No Previous Bankruptcy Claims

If you have filed Chapter 7 bankruptcy within the last eight years, you do not qualify to file for Chapter 7 bankruptcy again. This is due to the fact that you file Chapter 7 bankruptcy as a means to an end. The government assumes that you will learn from your mistakes and do what you need to do to ensure that you do not find yourself in the same financial situation again and again within an eight-year period of time.

Have a Qualifying Monthly Income

In order to qualify for a Chapter 7 bankruptcy, the courts will require you to establish a monthly income assessment for the previous six months. You will need to include information regarding how much income comes into your household each month, any benefits that are coming in, and any settlements that are received.

This includes disability, unemployment, and retirement payments. This allows the courts to determine if you are able to pay the debt that you owe if you act in a more financially responsible manner or if you are simply in debt too deep and need relief.

Must be an Individual Filer

No one can be covered under your bankruptcy filing, but you and your spouse. Even if someone lives in your home and is swimming in debt, they cannot lump their debt in with your debt. You need to take the time to make sure that you are able to prove which debts belong specifically to you, when you file for Chapter 7 bankruptcy.

If you meet all of the qualifications and want to find out more about filing for Chapter 7 bankruptcy, it is important to meet with a bankruptcy attorney as soon as possible. The attorney will take the time to make sure that you know what the rules are regarding bankruptcy and that you include everything that you possibly can when you file.

To learn more, contact a company like Howard S. Goodman Bankruptcy Attorney with any questions you have.