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Am I Eligible to File Bankruptcy?
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In determining whether a person or couple is eligible to file bankruptcy, we must first figure out which type of bankruptcy we are talking about, chapter 7 or 13. The reason is that the eligibility requirements are different for each chapter. In a nutshell, here are the basic requirements for each chapter:
Chapter 7 Eligibility:
- Must be under the median income for a family of your size
- Must not have filed a previous chapter 7 within the last 8 years
- Must not have receive a discharge from a chapter 13 filed within the last 6 years
Chapter 13 Eligibility:
- Can be over or under the median income for a family of your size, but must have some kind of income
- Must not have more than $360,000 in unsecured debts
- Must not have more than $1,081,000 in secured debts
- Must not have filed a chapter 7 within the last 4 years (although in some circumstances a chapter 13 still makes sense in this situation)
- Must not have received a discharge in a prior chapter 13 filed less than 2 years earlier
Keep in mind, these basic requirements are just the bare minimums. Even if you are eligible to file chapter 7, there could be a whole host of reasons chapter 13 is better for you, and vice versa. Talk to your lawyer about it to determine the best course of action. |
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