Am I Eligible For Bankruptcy?
Some people may put off speaking with a bankruptcy attorney because they are unsure if they will be eligible. In reality, most people are eligible for either Chapter 7 or Chapter 13. The real question, and why you want to speak with an attorney, is choosing which type of bankruptcy is best suited for your situation.
I understand that you may have many questions:
- What if I previously filed for bankruptcy?
- What if I am employed?
- Do I make too much money to be eligible for bankruptcy?
- What is the Chapter 7 means test, and how does it affects my eligibility?
Nearly 40 Years Of Experience
I am attorney Steven F. Bilsky, and I am here to help. I have been helping clients in Memphis since 1980. I offer a free initial consultation to answer your questions. I can help you determine if you are eligible for bankruptcy, if bankruptcy is the best solution for you, and what type of bankruptcy is best suited to address your debt problems.
Means Test For Chapter 7
A debtor is eligible for Chapter 7 debt relief if the debtor’s household income is below the median income of households of the same size. If you are considered to be an above-median income family, then you will have to satisfy the requirements of the Chapter 7 means test.
The means test calculates whether you should have money to pay your unsecured debt if you were living within the mean (median) income as set out by the Internal Revenue Service guidelines and standards.
Many of the people who contact my office are eligible for Chapter 7 bankruptcy. Even If you are not eligible for Chapter 7 bankruptcy, you may still qualify for Chapter 13 bankruptcy.
Eligibility For Chapter 13
Chapter 13 has a disposable income test that uses IRS guidelines similar to those used in the Chapter 7 means test to determine what you can pay in your Chapter 13 plan. You must have a regular source of income to enable you to make monthly payments under the terms of your Chapter 13 debt repayment plan.
Can I File For A Second Bankruptcy?
If you have previously obtained debt relief through a Chapter 7 bankruptcy, you must wait eight years from the time of your previous filing before you can file for another Chapter 7 bankruptcy.
If you previously obtained debt relief through a Chapter 13 bankruptcy, you must wait six years to file for Chapter 7 bankruptcy or two years to file for a subsequent Chapter 13 bankruptcy. These are general rules and exceptions do exist.
Contact Me Today
As an experienced lawyer, I can help you with your debt issues. I serve clients throughout the Memphis metropolitan area and western Tennessee. To schedule a free initial consultation with me, call my office at 901-525-6692 or use my convenient online form to make an appointment.