Eligibility Requirements
The U.S. Bankruptcy Code was designed to help people with debt problems obtain a fresh start. Accordingly, the eligibility requirements of the U.S. Bankruptcy Code are not unduly limiting. The majority of people who contact our office qualify for Chapter 7 bankruptcy, and the majority of those who do not qualify for Chapter 7 relief do qualify for Chapter 13 bankruptcy.
If you are struggling with debt and want to learn more about bankruptcy, contact B&B Law Group in Lutz, Florida. Our experienced bankruptcy lawyers serve clients throughout the greater Tampa Bay area.
Eligibility for Chapter 7 Bankruptcy
To be eligible for Chapter 7 bankruptcy, you must show the Court you do not have the ability to repay any of your unsecured debts. When you file Bankruptcy you must submit your budget to the Court. To be eligible for Chapter 7, your budget must show, after you pay your reasonable and necessary living expenses, you do not have any money left over to pay your unsecured debts.
If you are considered to be an above-median income family (including your spouse's income, even if he/she is not filing bankruptcy, then you will also have to submit a Means Test to the Court. Only above-median income debtors have to complete a Means Test.
Essentially, a Means Test is a test that calculates whether you should have money left over to pay your unsecured debt if you were living within your "means." A Means Test will take your average gross monthly income for the six month period prior to filing bankruptcy, and subtract various allowances for your living expenses, not necessarily your actual expenses, to determine whether you should have some money to repay your unsecured debts. If the Means Test determines that you should have some money available to repay some portion of your unsecured debts, then you are essentially barred from filing a Chapter 7 bankruptcy.
Given the complexity of the Chapter 7 means test, you should speak with an experienced bankruptcy attorney. We offer a free consultation and case evaluation.
Eligibility for Chapter 13 Bankruptcy
The vast majority of people who are not eligible for Chapter 7 bankruptcy are eligible for Chapter 13 bankruptcy. To be eligible for Chapter 13 bankruptcy, you must have a regular source of income that will enable you to make monthly payments for your three or five year debt repayment plan. Other limited requirements exist, but do not pose a problem for most people who are seeking Chapter 13 relief.
What if I Have a Previous Bankruptcy?
If you have previously obtained a Chapter 7 discharge, you must wait eight years to file another Chapter 7 bankruptcy. However, you may file for a Chapter 13 bankruptcy just four years after a 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 exist. Moreover, bankruptcy laws are subject to change. Anyone with a debt problem who needs relief should contact an attorney to determine their eligibility for bankruptcy relief.
Call for Your Free Consultation
We are pleased to offer a free consultation and case evaluation to help you determine if bankruptcy is right for you. We can also help you determine which type of bankruptcy is best for your situation. For help, call us today at 813-333-9583 or contact us by e-mail.
