Considering Bankruptcy
Louisiana residents sometimes find themselves struggling with finances. In these cases, you may feel like filing for bankruptcy is your best option. Today we will look at how bankruptcy can offer you the help you need.
We will start by examining Chapter 7 bankruptcy in particular. This type of bankruptcy offers many people help. But you must fulfill certain qualifications before you file.
Chapter 7 bankruptcy means test
There are many things that make you ineligible for Chapter 7 bankruptcy. The first is failing the means test. The means test determines your total income. If your total income is equal to or lower than the state’s median income, you are eligible. If it is higher, you are ineligible.
After passing this part, the court examines your bankruptcy history. You cannot file again if you had a debt discharged under Chapter 7 bankruptcy in the last 8 years. The same goes if you had Chapter 13 in the last 6 years. Also, you cannot file if you attempted to file within 180 days and the court dismissed your case.
Debt repayment and Chapter 7 bankruptcy eligibility
You are not eligible for this type of bankruptcy if you can repay some debt. If you have a certain amount of money after critical expenses, the court may deem you ineligible. Instead, they will ask you to file for a Chapter 13 repayment plan.
Finally, you must complete credit counseling requirements. You must take part in credit counseling with an approved nonprofit agency.
Deciding what type of bankruptcy suits your needs is crucial. If you want to read more about Chapter 7 or Chapter 13 bankruptcy, take a look at our linked webpage here. You can read more about your options. From there, you have the information you need to make a decision for your situation.
