Who is eligible for bankruptcy protection?
Who Qualifies For Bankruptcy? Whether you have been hit with a debilitating medical bill or suffered a job loss, bankruptcy can be a lifesaver. However, in order to file for bankruptcy you must first qualify. This can be done by taking a look at your current monthly income, as well as the disposable income you can have left over after subtracting the required debt payments. Chapter 7 and Chapter 13 bankruptcy A means test can be conducted to see if you qualify for bankruptcy. The means test compares your disposable income to the average monthly income of a typical family in your state. If you qualify, then you can get your debts discharged in a Chapter 7 bankruptcy. This type of bankruptcy is designed to wipe out most unsecured debt. If you qualify for Chapter 13 bankruptcy, your debts will be reorganized into a payment plan. Getting help from a bankruptcy lawyer A bankruptcy lawyer can help you determine which type of bankruptcy you qualify for. Chapter 7 is a good option for people w...