Do I Qualify for Bankruptcy?

Types of Bankruptcy

Qualifying for bankruptcy really means determining for which type of bankruptcy you are eligible to file. A Chapter 7 has the strictest eligibility requirements as it allows you to wipe out all of your qualifying debt and start from an entirely clean slate. In order to qualify, you must meet certain criteria as calculated in a means test , a legal requirement in filing. This test considers your income and other financial factors and requires extensive documentation of your financial condition. A knowledgeable lawyer can help you to apply this test and see if there is any way you can file for Chapter 7 if that is your preferred option.

A Chapter 13 allows you to adopt a creditor payment plan, with payments based not on the overdue balances but on what you can actually afford to pay. This usually remains in place for a period of 3 to 5 years, after which the remainder of your outstanding debt is in most cases cancelled. You will likely qualify for a Chapter 13 if not a Chapter 7, as long as you are employed and have a steady income with which to meet its obligations. The other of the three primary methods of bankruptcy is Chapter 11 and this is used in bankruptcy filings for businesses and corporations.

Understanding How Our Firm Can Help

If you are considering filing for bankruptcy, talk to an attorney from Price Law Group about which types of bankruptcy you qualify for and which would be best for your situation. The firm has assisted over 100,000 individuals to successfully eliminate their debt and achieve a better future. As the largest consumer bankruptcy firm in the southwest, with over 20 years in practice, they have earned the respect of the bankruptcy courts and can be of great service to you and your family.