If you’ve found yourself with loads of debt that you can’t financially handle, it may be time to consider filing bankruptcy to help you pay off what you owe, or even wipe the slate clean altogether. Everybody talks about it, why not talk about it with a Dallas bankruptcy lawyer?
In order to qualify for bankruptcy, either Chapter 7 or Chapter 13, you must do the following four things.
- Participate in a federal credit counseling program.
- Compare your monthly income to the median monthly income of citizens in your state. If yours is lower, you may be eligible for Chapter 7 bankruptcy. If it is higher, you may be able to file for Chapter 13.
- Add up your total debts, and calculate your net income. Take your monthly income, and deduct your monthly expenses. Multiply this by 60 to get your net income. If this number is below less than $10,000 and does not equal more than 25 percent of your total debt, you could be eligible for Chapter 7. If it is $10,000 or higher, you may qualify for Chapter 13.
- Pay the bankruptcy filing fee. For Chapter 7, it is $306. For Chapter 13, it is $281.
It’s important to note that luxury purchases made within 60 days of filing cannot be considered part of your total debt and are ineligible for bankruptcy. In addition, debt acquired through fraudulent or falsified credit cards or loan applications are also ineligible.
Are you considering filing for bankruptcy? Call 888-584-9614 to speak to a Dallas bankruptcy attorney at Warren & Migliaccio today about your eligibility and what steps to take next. If you are still unsure, check out our free eBook, What You Need to Know about Bankruptcy for useful information on your situation.