Clark & Washington

Am I Eligible for Chapter 7?

The decision to explore bankruptcy as a solution to serious financial problems is a difficult step to take. Sometimes our clients find themselves in a precarious financial position through no fault of their own and find that bankruptcy is the most sensible solution to their financial difficulties. Chapter 7 bankruptcy is available to individuals who meet specific income criteria.

Chapter 7 Bankruptcy Eligibility Criteria

In general, bankruptcy protects an individual from legal action by creditors. Unlike Chapter 13 bankruptcy which allows you to reorganize your debt, a completed Chapter 7 bankruptcy filing eliminates your debt and removes all legal responsibility for payment. Because the goal of Chapter 7 is to limit this type of bankruptcy filing to those who truly cannot pay their debts, the following eligibility criteria, called a means test, must be met.

We recommend that you consult with an attorney to determine the type of bankruptcy that is best for you. If you fail the means test or decide that a Chapter 7 filing is not for you, you can still qualify for a reorganization of your debt under Chapter 13 bankruptcy. Your Clark and Washington attorney can help you explore your options and decide a course of action that best fits your individual circumstances. Contact us at 770-488-9302 to set up a free consultation today.

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