Are You Allowed to File for Chapter 7 Bankruptcy?
There are several things a debtor needs to prove if they want to file for Chapter 7 bankruptcy protection. This type of bankruptcy, commonly known as liquidation bankruptcy, has more powerful protections attached to it than Chapter 13 bankruptcy in terms of the elimination of debts. However, due to this effectiveness, there are a number of qualification requirements which must be met in order to file under Chapter 7, and the failure to meet these standards will prevent one from filing.
If you are seeking a solution to an overwhelming debt situation, it may be appropriate to consider filing for bankruptcy protection. For more information regarding this powerful solution to many debtors’ problems, contact the Joliet Chapter 7 bankruptcy lawyers of Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.
Eligibility for Chapter 7 Bankruptcy
In 2005, the U.S. government added a new rule of eligibility to the bankruptcy process. With this addition under the law, there are five ways a person may be ruled ineligible for Chapter 7 bankruptcy. These include:
- Having a bankruptcy dismissed in the past 180 days
- Having a debt discharged in the past 8 years
- Having enough money to repay debts
- Defrauding creditors
- Failing to meet the means test, or having more income than the state average
A person unsure about whether they might be ruled ineligible for Chapter 7 bankruptcy should consult with their legal advisor about what next steps to take if they are still interested in bankruptcy protection.
Bankruptcy is frequently a desirable option for people who need debt relief promptly and cannot forestall their creditors any more. If you have reached this point with your finances, contact the Joliet Chapter 7 bankruptcy attorneys of Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201.