Do I Qualify For Filing Bankruptcy?

If you are considering your debt relief options, you likely qualify for some form of bankruptcy. Still, understanding how different levels of income and the type of debt you have influences your debt relief options can help you plan for bankruptcy and make the most strategic decisions possible.

At Steele Law Offices, LLC, we will work with you one-on-one to assess your financial situation and guide you toward the most favorable debt relief option for you. Even if you do not qualify for bankruptcy, we may be able to address your concerns through other means.

Your qualifications for bankruptcy will depend upon the following criteria:

The Means Test And Your Income

The means test determines if you have a level of disposable income that would allow you to repay some of your debts. The test analyzes your current monthly income (your average income over the course of several months) and subtracts your necessary living expenses, which may vary depending upon your individual circumstances. If your disposable income falls below a certain level, Chapter 7 bankruptcy could be used to wipe out your debts entirely. If your income falls above that level, Chapter 13 may be more appropriate and would allow you to restructure debts into affordable payment plans.

The Type Of Debt You Hold

Not all debt is created equal, and some debts are not eligible for discharge through bankruptcy. Medical debts, credit card debts and other unsecured debts (those not backed by assets) typically are eligible for discharge, but student loans, back child support and a large portion of tax debts are not. In certain cases, however, bankruptcy can be used to reorganize debts or delay payment so you have time to regain financial footing.

Every bankruptcy case is different, so do not let concerns about your eligibility deter you from contacting our office. Attorney Randall P. Steele and our team of experienced professionals are here to help you overcome the debt burden that has created hardship for you and your loved ones. Bankruptcy does not have to be a loss; it is a tool to help you get a clean slate.

Contact a lawyer at Steele Law Offices, LLC, in Glen Carbon, Illinois, online or by telephone at 618-288-9591 for more information.