Can Anyone Apply for Bankruptcy?
If you have mounting debt, you may be considering your options. If your income is low or you are unemployed, your debt will only grow until you can no longer survive and become homeless. To avoid this predicament, it’s a good idea to consider drastic measures, such as bankruptcy.
Bankruptcy is a good way to erase debts, but you likely have questions. Who can apply for bankruptcy? Do you qualify? Here’s what you need to know.
What are the Requirements?
Almost any adult with debt can file for bankruptcy. For Chapter 7 bankruptcy, there is no minimum or maximum amount of debt that you need to file. For Chapter 13, there is also no minimum debt. The maximum debt limits are high, so most individuals will fall within these limits. The debt limit for secured debt is $1,395,875 and unsecured debts, it is $465,275.
Also, the Bankruptcy Code technically does not require you to be of a certain age to file for bankruptcy. As long as you are an adult, you are old enough to file, and there is no upper age limit.
Qualifying for Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy, you will need to pass a means test. This test determines if your income is lower than the median for the same-sized household in your state and whether or not you have enough disposable income to make partial payments to unsecured creditors. If you pass the means test, you qualify.
There are other qualifications. You can’t have filed for Chapter 7 bankruptcy in the previous eight years. You must finish a credit counseling course offered by an approved agency within 180 days before you file for bankruptcy. Even if you’re eligible, a judge could dismiss your case if you are found attempting to defraud creditors.
Qualifying for Chapter 13 Bankruptcy
If you do not qualify for Chapter 7 bankruptcy, you may qualify for Chapter 13. Here are the main requirements:
- You cannot have received a discharge in another bankruptcy case during the last 4 years for Chapter 7, or the last 2 years for Chapter 13.
- You must have sufficient income to make the monthly payments outlined in your bankruptcy plan.
- You must provide proof that you filed federal and state income tax returns for the past four years.
- You must finish a credit counseling course within 180 days before you file for bankruptcy.
Contact Our West Palm Beach Bankruptcy Attorney Today
Virtually anyone can file for bankruptcy as long as they are an adult. You will also need to meet various criteria to qualify for Chapter 7 and Chapter 13 bankruptcy, but the requirements are not too strict.
Do you qualify for bankruptcy? Is it right for you? If so, contact West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. to help you understand your legal options. Fill out the online form or call (561) 658-1789 to schedule a consultation. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.