Have you begun researching Chapter 7 bankruptcy to see if it would help your financial situation? If so, one essential thing to know is that this branch is not for everyone. To use it, you will have to meet specific eligibility guidelines. While numerous factors affect your ability to file, here are the top three to learn.
1. Your Income Must Fall Below the State Average
Chapter 7 is the branch of bankruptcy law created to help people who are not considered high earners. If you earn too much money, you cannot use this branch. To find out if you meet the guidelines, your bankruptcy attorney will complete a test. In bankruptcy law, this is the mean's test. The mean's test adds up your income from all sources for the previous six months. Next, it compares this amount to the average in your local state. You can only use Chapter 7 if you pass the mean's test. To pass it, your income must fall below the state's average.
2. You Must Complete the Necessary Waiting Period If You Filed Before
Two, have you filed for bankruptcy in the past? If not, you will not have to worry about this guideline. If you have, though, you will need to make sure you wait long enough before filing again.
The waiting period is either six or eight years. It is six years if you filed for Chapter 13 in the past, and it is eight years if you used Chapter 7. If you are not sure what date you filed, look it up on the paperwork from your prior case.
3. You Cannot Have a Dismissed Case in the Last Six Months
If you want to file for Chapter 7 but had a case dismissed in the last six months, you cannot refile. You must wait at least 180 days from the date the court dismissed your case. If the court dismissed your case, it is probably because you failed to do something they asked for. It may also be because you did not meet the essential criteria for using this branch.
These are the three main factors a bankruptcy lawyer will evaluate to find out if you meet the eligibility requirements for Chapter 7 bankruptcy. Do you want to find out if you meet these and any others necessary for filing? If so, contact a bankruptcy attorney law firm to speak with an experienced lawyer. To learn more about chapter 7 bankruptcy, reach out to a company such as David M. Todaro Co., LPA.Share