Who Can File Chapter 7 Bankruptcy?
Here are ways to discover if you can file for Chapter 7 bankruptcy.
How High Is Your Income?
If your income is less than or equal to the median income for your state, you are usually eligible for Chapter 7 bankruptcy.
Do You Have Enough Disposable Income to Repay Some Debts?
The means test indicates whether you have enough disposable income to repay some of your debts over five years. Unsecured debts are those debts not backed by collateral.
The bankruptcy trustee will look at Schedule I: Your Income and Schedule J: Your Expenses. If there is enough left over each month to make a notable payment to your creditors, the trustee will recommend Chapter 13 to the court.
You Previously Received a Bankruptcy Discharge
You can’t get another Chapter 7 bankruptcy discharge if you obtained a Chapter 7 Bankruptcy discharge within the last eight years, or a Chapter 13 case within the last six years.
You will not be able to proceed if the court has turned down your bankruptcy discharge in the last 180 days when:
- A court order has been violated
- the court ruled that your filing was an abuse of the system or fraudulent
- A creditor requested an automatic stay before you filed
You Defrauded Your Creditors
- A bankruptcy court might dismiss the case if they suspect you concealed assets from your creditors.
- The Filer Is a Corporation or LLC
- A business can file for bankruptcy but Chapter 7 bankruptcy won’t clear the debt of a corporation or LLC. Instead, the trustee will liquidate the assets of the company and distribute the proceeds to creditors.
Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale
Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business Bankruptcy, Chapter 7 Bankruptcy, Creditor Representation, Chapter 5 Claims, Chapter 13 Bankruptcy, Business Restructuring, Chapter 11 Bankruptcy, and more.
*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.