Are You Eligible for Chapter 7 Bankruptcy?
A person pushed beyond their financial limits by their creditors may want to file for Chapter 7 bankruptcy’s strong protections. However, this type of bankruptcy has significantly stricter eligibility rules than does Chapter 13 bankruptcy. If a debtor does not meet these requirements, they may not be allowed to file for bankruptcy under Chapter 7’s liquidation rules.
If you are concerned about being eligible for Chapter 7 bankruptcy, you may want to consider consulting with a legal advisor about your options. To discuss whether you may file for this kind of bankruptcy or not, contact the Birmingham Chapter 7 bankruptcy lawyers of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.
Chapter 7 Eligibility Rules
Under the law, a person may be unable to file for Chapter 7 bankruptcy if they do not meet the full eligibility requirements. In particular, a person may not be able to file for Chapter 7 protection if any of the following apply:
The would-be filer fails the means test, or has more income than the state average
The would-be filer defrauded creditors
The debtor has been dismissed from bankruptcy up to 180 days prior
The debtor has had debts discharged within 8 years
The debtor has sufficient funds and income to pay back debts, but is withholding it
These eligibility rules can potentially keep a person from filing for bankruptcy under Chapter 7 bankruptcy. A debtor may want to ask their legal advisor about their options prior to filing to avoid wasted time and energy.
Choosing to file for bankruptcy can be difficult, but it may be the right decision. To learn more about the bankruptcy process and what kind of bankruptcy you may qualify for under the law, contact the Birmingham Chapter 7 bankruptcy attorneys of Greenway Bankruptcy Law, LLC, at (205) 324-4000.