Do I Qualify For Filing Bankruptcy?
If you are in need of 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.
I am attorney Randall Steele, the principal attorney at Steele Law Offices, LLC, I 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, I may be able to address your concerns through other means. I can also answer your questions as to how bankruptcy may affect your divorce, support, workers’ compensation or other area of your life.
Your qualifications for bankruptcy will depend upon the Means Test.
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 me
Work With An Attorney Who Understands
Work with an experienced professional 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. I can also help you understand how bankruptcy affects other areas of your life.