- The Differences Between Chapter 7 and Chapter 13 Bankruptcy
- Basics of Chapter 7 Bankruptcy
- Basics of Chapter 13 Bankruptcy
- Common Questions about Planning for Bankruptcy
- Dallas Bankruptcy Attorney
- Chapter 7 Bankruptcy
- Bankruptcy Comparison
- Communities We Serve
- What is Bankruptcy?
- Learn About Bankruptcy?
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is the most popular type of bankruptcy for individuals. It is also the simplest and quickest type of bankruptcy. This type of bankruptcy is a good option to consider when you have no hopes of paying off your credit cards, medical bills, and payday loans reasonably and you have very low income or even no income. Chapter 7 bankruptcy consist of two basic parts: (1) selling your property to pay off what you can and (2)eliminating the rest of your unsecured debt like credit cards, medical bills, and payday loans. Most of the time, people who file for Chapter 7 bankruptcy give up very little, if any, property due to all the exemptions. Here is an overview of the basics of Chapter 7 bankruptcy.
Qualifying for Chapter 7 Bankruptcy
Before the process can get underway, you have to find out if you are eligible for Chapter 7 bankruptcy. In order to file for Chapter 7 bankruptcy, you have to pass a Means Test. A Means Test is a test to see if your income is lower than the median income of the state. For Texas the median income for one person is $41,225, two people is $55,895, three people is $60,503, four people is $67,296, and an additional $8,100 for every additional person in the household as May 1, 2013. If your current income is lower than the median income, you will automatically pass this test. However, if your income is over the median income, you must include information about your expenses to see if you can still qualify for a Chapter 7 bankruptcy. Most of the time, if you can pay for a Chapter 13 bankruptcy repayment plan, chances are you are not going to qualify for a Chapter 7 bankruptcy. However, you should consult an experienced lawyer before you believe that you cannot file for a Chapter 7 bankruptcy.