You Have the Choice to Take Back Control of Your Financial Future.

Do you qualify for Chapter 7 bankruptcy?

On Behalf of | Nov 27, 2018 | Chapter 7 Bankruptcy

If you have considered filing for bankruptcy in Florida, you may be unsure of which type of bankruptcy is best for your situation. Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, is most common in the United States, as people attempt to emerge out from under a pile of credit card debt, medical expenses, mortgages and other expenses. Chapter 7 bankrutpcy absolves these debts and gives you a fresh financial start. In order to file for Chapter 7, however, you must meet the requirements set by the Bankruptcy Code and the United States Courts.

You cannot file for Chapter 7 if you have recently filed for bankruptcy and had your case dismissed because you did not follow the rules of the bankruptcy process. The court will also look at your income over the past five years. If you make more than the state median, or average, you must complete a means test. This assessment looks at your income information and determines if you really need to file for Chapter 7 or if you should file for Chapter 13 bankruptcy, which sets up installment plans for you to repay a portion of your debt.  

In addition to these requirements, you must undergo credit counseling within 180 days prior to filing for bankruptcy. Once you have completed the required course, you are given a certificate to submit along with your bankruptcy paperwork. A trustee appointed to oversee your case will ultimately decide if you are eligible to file for Chapter 7 bankruptcy.

This information is intended to educate and should not be taken as legal advice.

Archives