QUESTION
Is there a way to know if the judge will accept a Chapter 7? How?
Asked on Apr 10th, 2015 on Bankruptcy - Georgia
More details to this question:
I am in the process of looking to file a bankruptcy. I realize I will need an attorney to represent me, but is there a rule of thumb as to whether I will even qualify for a chapter 7 vs. a chapter 13?
13 ANSWERS
Hire a lawyer. I would need the answers to dozens and dozens of questions to properly answer your question.
Answered on Apr 16th, 2015 at 7:47 PM
Deborah F. Bowinski
You should definitely retain and experienced lawyer to guide you through the process. There are a number of differences between chapter 7 and chapter 13. Some of those differences are related to the types of debts one owes and the goals one has within the bankruptcy context. Other differences relate to eligibility for chapter 7 relief which is largely driven by household size and gross household income. If your annual household income is below the median for your size household in your state then you can file a chapter 7 automatically. If your household income is above the median then there is a complicated further analysis that must be done in order to determine whether you will be permitted to file chapter 7 or whether you must file a chapter 13 case instead. Only your lawyer who is quite familiar with your circumstances can answer that for you with any certainty.
Answered on Apr 13th, 2015 at 1:16 PM
2 Awards
Yes, whether you pass the means test and the good faith analysis which look at whether you are over median income and whether you have any disposable income after paying your necessary expenses.
Answered on Apr 13th, 2015 at 1:14 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Well, there is no rule of thumb, but a set of rules that would determine if you qualify for a Chapter 7 case and whether you will be allowed to remain in the Chapter 7 case.
Answered on Apr 13th, 2015 at 1:10 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You need to see an attorney. It depends on the amount of money from your income which is judged available to pay to creditors.
Answered on Apr 13th, 2015 at 1:09 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You qualify for a Chapter 7 based on income. The "means test" is based on your state. In Ohio, a single personal can file Chapter 7 with an income under $44,000 per year. The test is based on your actual income for the past 6 months. So say a teacher who makes $60,000 a year but has zero income for the 3 summer months in September would qualify (last 6 months would have 3 months of $6,700 and 3 months of zero - monthly average would be $3,350 or $40,200 a year) but in April, they would not qualify. You qualify for a Chapter 13 by having a regular income (meaning you have income every month) and not more than $380,000 unsecured debt (like credit cards) or more than $1,150,000 of secured debt (mortgages and car loans).
Answered on Apr 13th, 2015 at 1:00 PM
Unfortunately, there is no way to guarantee that a Chapter 7 will succeed. However, by consulting with a bankruptcy attorney you should be able to get a better sense of whether you are qualified to file Chapter 7 and the likelihood that the case would succeed. There are income limitations for Chapter 7. Generally, those limitations are based on household income, household size, and certain necessary living expenditures. Again, by consulting with a bankruptcy attorney, you should be able to get an answer of whether you are eligible to file Chapter 7, and if not, what your alternatives are, including Chapter 13.
Answered on Apr 13th, 2015 at 12:53 PM
There are two criteria ? first, and most often discussed, is whether you pass the Means Test, The Means Test is more than just looking at a number on a chart ? if your income is above that number, you hunt for deductions. If you don?t have enough deductions to pass, you may still be able to file Chapter 7. The second criteria is the ?good faith test? which is your budget. Even if you don?t pass the Means Test, if you pass the good faith test, a good bankruptcy attorney can get you a chapter 7 discharge anyway. But if you don?t pass the good faith test, you may not be eligible to file Chapter 7 even if you easily pass the Means Test.
Answered on Apr 13th, 2015 at 12:44 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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In order to qualify for a Chapter 7 bankruptcy, you must be able to pass the means test. This is a comparison of your income levels against the median income level for other people who are similarly situated in the area in which you live. If you don't meet the means test to file Chapter 7, and you have a regular income, then you may qualify to file for Chapter 13 - Wage Earner's petition.
Answered on Apr 13th, 2015 at 12:41 PM
Yes there are very specific guidelines and if you follow the guidelines day you will know exactly which one of you will qualify for.
Answered on Apr 10th, 2015 at 5:09 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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There is not a 'rule of thumb' as such. Rather there is a fairly lengthy 'Means Test' which you complete, to create what Congress thinks of as an objective measure of what you should be spending. You also do up a monthly budget of income and expenses. The bottom lines of the Means Test will tell you whether or not you can file under Chapter 7. There is one rule of thumb, as it were. If your household income for the past six months, doubled, is less than the State median for a household of your size, then you certainly can file under Chapter 7. If it is greater, then you would have to complete the rest of the Means Test to see where you stand. My office files many bankruptcy cases, of all types. We'd be glad to sit down with you and discuss how we can help. Good Luck.
Answered on Apr 10th, 2015 at 4:46 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Yes, there is something called the "means test", which says that if you make under a certain amount of money you qualify, and if you are over, you might qualify still, but it is a complicated test. So you are best off talking to a bankruptcy lawyer who can help you.
Answered on Apr 10th, 2015 at 4:46 PM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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As Bankruptcy attorneys, we know how to determine if you qualify for either a Chapter 7 or 13. Call a Bankruptcy attorney to discuss your situation.
Answered on Apr 10th, 2015 at 4:44 PM