If you’ve been thinking about filing for Chapter 7, a type of bankruptcy, there are requirements you must meet to be considered qualified.
The three primary things that will be considered are:
- Income Level – There is a limit as to how high it can be.
- Previous Bankruptcies – If you have filed recently, you will not be eligible.
- Ethics – You will be evaluated as to whether you might be cheating your creditors.
With regard to income level, if yours is higher than what is normally accepted, you will be required to take a test to verify that you are unable to pay your bills.
There are two steps in terms of measuring income. First, your monthly income must be compared to that of similarly sized families in the state in which you live in. It is your income over the last six months that will be considered.
The second step is applied if your income is more than that of other families in your area. You will need to take a test to see if you have enough money after the acceptable expenses to pay at least part of your other debt.
Although the criteria are clearer than before, it can still be tricky to determine what is and is not acceptable with regard to income and expenses. Contact Melder & Melder at 248-721-9222 for help on finding out if you are eligible for Chapter 7