Chapter 7 Eligible
Eligibility for Chapter 7 is based on the MEANS test, which is a test that evaluates your income, spouse's income and other financial and lifestyle factors to determine the likelihood that you would be able to pay your existing debt in a reasonable timeframe. As your lawyer, I will assist you with the application and evaluation processes.
There is a chance that Chapter 7 may not be the best solution for your situation. Situations that may exclude you from eligibility include:
- If your net income is greater than the federal standards
- If you have too much equity in your home
- If you have filed Chapter 7 within the past eight years. (Note that this may not exclude you from filing Chapter 13)
You will need these documents to determine your eligibility for Chapter 7 bankruptcy:
- Last six months of bank statements for accounts
- Copies of deeds and mortgages to real estate
- Copies of car titles
- Copies of last six months of paycheck stubs for you and your spouse
- Any lawsuits filed against you
- A recent credit report or list of creditors with bills owed
- Last two years of tax returns and W-2s
- Copy of your declaration for life insurance
- Statements from any retirement accounts
While the laws passed in 2005 made it more difficult to qualify for Chapter 7 bankruptcy, it’s still worth investigating to see if you can qualify. However, if we find out you can’t qualify for Chapter 7, you can certainly file under Chapter 13. Let’s discuss your options.
Contact me today to schedule a free initial consultation at 502-267-7967 or use my contact form.