How Do You Qualify for Bankruptcy?

In today's economy, even individuals who make a significant income can fall into terrible debt that they cannot hope to resolve. Even high-income individuals may consider filing for bankruptcy as a means of getting out from under unmanageable debt. There are several different kinds of bankruptcy that are available to people are in financial straits.

A chapter 7 bankruptcy is one where almost all of your debt is discharged without having to pay it off. This is for people who make a very low income. To find out if you qualify for chapter 7 bankruptcy, you must take a means test. A means test compares your income to the average income in your state, and if you make below the average income, you will likely be eligible to file for chapter 7.

If you are not eligible to file for chapter 7, you may want to consider chapter 13 bankruptcy. Under chapter 13 bankruptcy, much of your debt is discharged, while you still have to pay some back under an affordable and structured payment plan. By making only one monthly payment toward all of your various debts, you can get your debt under control and still afford to pay your living expenses, such as house and car payments. Chapter 11 bankruptcy, is similar to chapter 13, but is for businesses and corporations that have fallen into financial distress.

Two Decades of Legal Experience

No matter what kind of bankruptcy you are eligible to file for, an experienced bankruptcy attorney from Price Law group will help you every step of the way. We have over 20 years of experience in bankruptcy law and have helped over 100,000 clients with their cases. We can help negotiate better terms for your Chapter 13 filing, and after your debt is discharged, the firm can advise you on credit repair.