In 2010 alone, more than 1.1 million Americans qualified for Chapter 7 bankruptcy. As such, one of the main questions new clients want to know is whether they qualify for Chapter 7 bankruptcy. The answer is very straightforward, although it does require the skills and experience of a Dripping Springs bankruptcy attorney. If you don’t qualify for Chapter 7 bankruptcy, however, don’t fret. You may still be able to file for Chapter 13 bankruptcy, which can help you get out of your debt and back on track.
Chapter 7 bankruptcy is also referred to as “no asset” debt because it is usually reserved for those individual with little to no assets. If you own a home or property, this may not be the bankruptcy option that is best for you. Also, it is important to know that certain types of debt cannot be discharged, such as student loans, alimony payments, or child support.
Do I qualify for Chapter 7 bankruptcy? In order to best answer this question, you need to understand how the bankruptcy laws work in Texas and throughout the United States. In order to file for Chapter 7 bankruptcy, you must first qualify. This means that you must pass a means test to determine if you make too much money to qualify for Chapter 7.
In order to determine if you qualify for Chapter 7 bankruptcy, you must first compare your annual income with the median income of your state. As of November 2013, in the State of Texas, the median income for a single-earner is $41,354. If your income is less than this, then you may automatically qualify for Chapter 7 bankruptcy. If yours is not, then you may still qualify, but you must proceed to the next step. Your Dripping Springs bankruptcy attorney will then factor in your monthly expenses, income, and debts to determine if you qualify.
It is important to remember that even if you do not qualify for Chapter 7 bankruptcy, you may still be eligible for debt relief. Your attorney will be able to review all of your options with you and help you choose the legal and financial path that is best for you and your family.
If you are considering Chapter 7 bankruptcy, it is important to understand all of your options. Each bankruptcy case has its own unique set of circumstances and an experienced Texas bankruptcy lawyer can help you make sense of it all. If you would like for us to examine your situation, contact our Dripping Springs Texas Law Firm today to speak with an attorney. Call (512) 615-3569 to find out how Attorney R. Brian Daniel has helped many other individuals and businesses with legal questions just like yours!