What Are The Qualifications For Filing Bankruptcy
If you are in a financial situation that you believe only to be able to be resolved by filing bankruptcy, you need to know some things. First of all, there are two types of bankruptcy available to people. The two types of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. However, be advised that there are qualifications for filing bankruptcy. Part of the qualifications are due to a revision in bankruptcy laws in 2005.
The best thing to do if you feel your debts are unmanageable is to contact a credit counseling agency for a consultation on your particular situation. Many times these consultations are free of charge, and they can really help you figure out what the best option is for you. Maybe it will be something other than bankruptcy. However, bankruptcy is the only option for some people, but it is still necessary that they meet the qualifications for filing bankruptcy. Qualifications vary depending on the type of bankruptcy you are planning on filing.
Chapter 13 bankruptcy is a type of bankruptcy that requires that you have some source of income to be able to file. This is one of the qualifications for bankruptcy of the Chapter 13 variety. Another qualification is that you live in the United States or own property in the United States. Your total unsecured debt must be $250,000 or less and your total secured debt must be $750,000 or less.
Chapter 7 bankruptcy is similar to Chapter 13 bankruptcy in that there are also qualifications for filing this type of bankruptcy. To qualify for Chapter 7 bankruptcy, the debtor can be a business owner, corporation or individual. It makes no difference what the amount of debt happens to be. In other words, there are no limits. In both types of bankruptcy, Chapter 7 and Chapter 13, there are the qualifications for filing bankruptcy that are the same. If the debtor has had a bankruptcy case dismissed within the past 180 days for willful failure to appear before court or comply with the orders of the court, then neither type of bankruptcy can be filed. In addition, if the debtor does not complete a credit counseling session within 180 days before filing, he or she will not qualify for bankruptcy. Be advised that anytime you file for bankruptcy, you would be best represented by an attorney who specializes in bankruptcy law. Do yourself a favor and research the background of any attorney you consider hiring. While bankruptcy may not be cheap, it is usually affordable. And, even though you have to meet qualifications for filing bankruptcy, it can be a solution that gives you financial relief. Always make sure you are making the best decision for you. Bankruptcy does not come without consequences. However, the benefits may outweigh the consequences for you.
Declaring Personal Bankruptcy| Privacy Policy|
| 