You might not have been willing to consider a Chapter 7 bankruptcy filing until now, but much of the stigma surrounding bankruptcy is baseless. To learn the ins and outs of your decision, you’ll find valuable information on our bankruptcy website. So what are the grounds for filing Chapter 7 bankruptcy?
Qualifying for Chapter 7 Bankruptcy Filing
Before you can begin the bankruptcy process, you will have to pass what’s called a means test. In doing so, you will be asked to calculate your average current monthly income, which is determined based on your income over the past 6 months prior to your filing for bankruptcy. If you earn less than the average family of your size in your area, then you automatically qualify for a Chapter 7 bankruptcy filing.
If you earn more than the average income in your area, then you have to go through the rest of the means test before you will be permitted to file. Your necessary living expenses will be subtracted from your monthly income, and if the remainder is sufficient to repay some of your unsecured debts, then you will likely have to file a Chapter 13 bankruptcy, which our website explains, and a trustee will help you establish a 5-year repayment plan.
You may be considered ineligible for a Chapter 7 bankruptcy if it’s too soon since your last debt discharge, if you had a previous Chapter 7 or Chapter 13 bankruptcy case dismissed within the past 180 days for a violation, or it’s suspected that you are or have attempted to defraud your creditors or conceal assets.
Your trustee and the courts may become suspicious of your activities if you have run up high bills for luxury items, concealed money or property from your spouse during a divorce, falsified your income information on a credit application, or transferred a high volume of assets to a friend or family member.
When You Decide to File for Chapter 7 Bankruptcy
When you file for a Chapter 7 bankruptcy, a proof of claim form of bankruptcy will be mailed to creditors whom you still owe and who could benefit from the sale of your assets that are eligible for liquidation. You also will be required to receive mandatory credit counseling from an authorized agency before any action can take place on your Chapter 7 filing.
Once you’ve filed your Chapter 7 bankruptcy petition, you also will be required to complete a certified Debtor Education Course, a requirement that was added to bankruptcy filings in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. If you don’t complete this educational course, your debt discharge will not be processed.
After Your Bankruptcy Petition is Approved
Once your bankruptcy filing has been accepted and you have completed all the requirements of your petition, your eligible debts will be discharged and you will be removed from bankruptcy protection that shields you from creditor harassment.
After your successful bankruptcy petition, you will be ineligible to file another Chapter 7 bankruptcy for a period of 8 years. Additionally, you will have to wait a period of 2 years before you are eligible for a Chapter 13 bankruptcy. Take note that the timeframe is between filing and filing, not discharge and filing.
If you’re considering a Chapter 7 bankruptcy filing, don’t be fooled or intimidated by the assumptions of bankruptcy – instead, just speak with an attorney at our law offices in Dallas for a no-cost and no-obligation consultation about your case. Our team can also help you fill out your proof of claim form for bankruptcy, and our website can inform you more about how the process works.
Contacting the Bankruptcy Law Offices in Dallas
At Warren & Migliaccio, our goal is to protect you and your family so that you can take the necessary steps to proactively plan for your future. When financial circumstances outside of your control threaten your well-being, take control of your situation by contacting our Dallas law firm.
Our bankruptcy website provides detailed information about the bankruptcy process for you to use to research any questions you may have. We’ll guide you through different steps of the legal process, such as your proof of claim form of bankruptcy, so you can make informed decisions and choose the best course of action. If a personalized, teamwork-driven approach sounds like what you need for your case, call 1-888-584-9614 today. We’re here to help.