What are the eligibility requirements for Chapter 7 bankruptcy?
Chapter 7 is the type of bankruptcy that allows you to eliminate, or discharge, all or some of your debt. The result is simple—elimination of debt—but you have to be eligible for Chapter 7 first in order to file. You must be aware of all the requirements of the law before filing.
First, you have to decide whether it is advantageous for you to file for Chapter 7 bankruptcy. Is your goal to eliminate your debt? And once you’ve decided you want to file, you need to find out whether or not you are eligible. Here are the requirements:
- You must not have filed for a Chapter 7 in the previous eight years
- You must not have filed for a Chapter 13 that paid less than a 70% dividend to unsecured creditors in the previous six years
- You must be a resident of the United States
Now, just because you are eligible, it doesn’t mean it’s advisable to file for Chapter 7 bankruptcy. Here are some general guidelines for filing for Chapter 7:
- You spend more money than you make
- You earn less than the average household of the same size in your state
- You don’t own any non-exempt assets
Remember, even if you fit all these requirements and guidelines, you still need competent legal advice to ensure you don’t take any unnecessary risks.
Call us toll-free today at 1-800-260-1402 for your complimentary initial bankruptcy consultation or visit one of our 100 offices across the United States. You can also read our many informative articles on our website, www.maceybankruptcylaw.com. For the best advice on filing for Chapter 7 or Chapter 13 bankruptcy protection, trust the experienced and caring attorneys at Jacoby & Meyers Bankruptcy Law.