Filing for bankruptcy can be a complicated and stressful task. This video explains what a Chapter 7 bankruptcy is and how to qualify for one.
Chapter 7 bankruptcy can only be filed once you qualify. there are also chapter 13 bankruptcies for individuals who don’t qualify for a chapter 7 because their income is too high. They have to repay their debts over a 3-5 year period.
Chapter 7 bankruptcies do not need to be paid back. That’s right. Chapter 7 bankruptcies eliminate your dischargable debt, meaning that your debt vanishes.
There are two major factors to determine if you can qualify. The first is that you can only file for a chapter 7 bankruptcy once every eight years. The second factor is a means test that determines if your income qualifies you.
The means test determines your average monthly household income over a six-month period. It is also determined by your household size and the state you live in.
There are online resources to help give you a general idea of if you qualify for chapter 7 bankruptcy. You fill in your state and monthly earnings, along with the number of people in your household, and an estimation comes out. You use this estimated monthly earning to figure out if you qualify.
To learn more about chapter 7 bankruptcies, click on the link above.