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Who is eligible for Chapter 7 bankruptcy?

| Mar 25, 2019 | Chapter 7 |

Many Louisiana residents may struggle with their overwhelming debt for years before deciding to take significant measures to address it. Of course, even if they decide to move forward with Chapter 7 bankruptcy, they must still meet the requirements necessary to receive debt relief through this option. As expected, a major eligibility factor relates to income.

When hoping to qualify for Chapter 7, potential applicants must first pass a means test. This test involves officials looking at a person’s income and comparing it to the median, or middle-level, income of the state. If the individual’s income level falls below the median income, it is likely that he or she will qualify for Chapter 7. Documentation of passing this test is important in a bankruptcy petition.

Additionally, a person may not qualify for bankruptcy if he or she has already completed the bankruptcy process in the last six to eight years. However, this stipulation depends on the type of bankruptcy that was utilized during that case. Of course, it is important to gain exact qualifying information for a particular person’s case.

Qualifying for Chapter 7 bankruptcy may not necessarily seem difficult, but it is also not for everyone. Other forms of bankruptcy exist, and it is wise to explore available debt relief options when looking to get outstanding liabilities under control. Working with experienced bankruptcy attorneys could help interested Louisiana residents gain reliable information on their relief options, how to qualify for certain methods and what steps are needed to successfully complete the legal proceedings.

Facing Overwhelming Debt?