Filing for Chapter 7 bankruptcy can be one of the best ways to get out of unmanageable debt, but it isn’t an option for everyone. As a way to discharge your debt, Chapter 7 allows you to get out from under the weight of extremely high payments – but only if you properly qualify.
There are a number of rules you must comply with if you want to file Chapter 7 bankruptcy. If you’re considering this debt relief option, you’ll want to know exactly what those rules and qualifications are.
Who is Eligible for Chapter 7 Bankruptcy in New York?
As we mentioned, not everyone will qualify for Chapter 7 bankruptcy. In order for Chapter 7 to be a viable option for you, you need to make equal or below your state’s median income. In the state of New York, that amount is around $55,000.
If you make more than the state minimum, you’ll have to pass a “means test.” The means test will look at your income and debts to determine whether or not you could realistically pay off your debts. If the bankruptcy court decides that you’re unable to repay your debts with your current income, you may qualify for Chapter 7 bankruptcy.
Who is Not Eligible for Chapter 7 Bankruptcy?
There are some other circumstances that may prevent you from being eligible for filing Chapter 7. For example, if you attempted to defraud creditors, you won’t be able to discharge your debts through Chapter 7 bankruptcy. You will also not be able to file for Chapter 7 bankruptcy if you do not attend credit counseling.
If you’ve filed Chapter 7 bankruptcy in the past, you may also be ineligible to discharge new debts. You are only eligible to file Chapter 7 bankruptcy once every eight years.
Filing for Chapter 7 Bankruptcy
If you’re unsure of whether or not you qualify for Chapter 7 bankruptcy, you’ll want to talk with an experienced bankruptcy attorney. The Brooklyn bankruptcy lawyers at Michael F. Kanzer & Associates, P.C. can help you determine whether or not Chapter 7 bankruptcy is right for you. If you meet the qualifications, they can help you through the bankruptcy process to ensure you get out from the weight of your crushing debt.