Bankruptcy Eligibility Issues
At Sno-Isle Bankruptcy, our goal is to provide the relief you need. Whether you are struggling with credit card debts, medical bills or other forms of consumer debt, a Chapter 7 or Chapter 13 bankruptcy may allow you the fresh start you have been seeking.
The good news is that most of the people who contact our law office are eligible for Chapter 7 bankruptcy and even those who do not are often eligible for Chapter 13 bankruptcy.
Am I Eligible for Chapter 7 Bankruptcy?
Since Chapter 7 bankruptcy completely discharges most forms of consumer debt, it is a powerful legal remedy for people dealing with unmanageable debt. The U.S. Bankruptcy Code places certain restrictions on an individual's eligibility to file for Chapter 7 bankruptcy:
- Typically, a person may only file for Chapter 7 bankruptcy once every eight years. Therefore, it is wise to carefully consider the timing of a Chapter 7 bankruptcy petition.
- You may be required to wait four years after filing a Chapter 13 bankruptcy to file a Chapter 7 bankruptcy.
- To be eligible for Chapter 7 bankruptcy, you must be able to meet the requirements of an economic means test that takes into account your income. The bankruptcy court will typically consider your income over the six month period prior to your filing, so the timing of your bankruptcy application is important in this respect as well.
Am I Eligible for Chapter 13 Bankruptcy?
If you are not eligible for Chapter 7 bankruptcy, you may very well be eligible for a Chapter 13 bankruptcy. If you are considering a Chapter 13 bankruptcy, you should know:
- Unlike Chapter 7 bankruptcy, Chapter 13 has no economic means test.
- To be eligible for Chapter 13 bankruptcy, you must have a regular source of income. With a Chapter 13 bankruptcy, you pay back a portion of your debts gradually over a three to five year repayment plan, so the bankruptcy court will require proof that you have an ability to make monthly payments.
Contact an Everett Bankruptcy Attorney
If you need to speak with an experienced bankruptcy lawyer, contact Sno-Isle Bankruptcy in Everett, Washington. To schedule a free consultation, call 425-265-9400 or contact us by e-mail.
