Eligibility: Chapter 7 & Chapter 13 Bankruptcy
One of the most common questions I get from prospective clients is whether or not they are eligible for bankruptcy relief. The answer is almost always yes.
Most of the people who contact my firm are eligible for Chapter 7 bankruptcy and the majority of those who are not eligible for Chapter 7 are eligible for Chapter 13 bankruptcy.
To speak with an Indiana bankruptcy attorney about your options, contact the law office of Boruta. I offer a free consultation to look at your financial situation, help you make an informed decision about bankruptcy and let you know if you are likely to be eligible for bankruptcy relief.
Eligibility for Chapter 7 Bankruptcy
To be eligible, you must meet an economic means test. The test takes into account your income and your family size. Generally, the test will look at your average income over the past six months.
In addition to satisfying the means test, you could be barred from filing Chapter 7 bankruptcy if you have a previous Chapter 7 bankruptcy that is fairly recent. As a general rule, you have to wait eight years from the date of a previous Chapter 7 bankruptcy filing to be eligible for a second Chapter 7 bankruptcy. There is an exception, however if you are at risk of losing your home to foreclosure.
My firm has represented many clients that are filing for bankruptcy for a second time. I understand that when it comes to financial difficulties such as credit card debt, lightning can in fact strike twice.
Eligibility for Chapter 13 Bankruptcy
Even if you are not eligible for Chapter 7 bankruptcy, you may be eligible for Chapter 13 bankruptcy. To be eligible for Chapter 13 relief, you do not have to meet an economic means test. Moreover, if you have a previous Chapter 13 bankruptcy, you may file a second Chapter 13 bankruptcy just four years from the previous date of a Chapter 13 filing.