You’re thinking about filing for bankruptcy, but you know there are different kinds of bankruptcy that you can pursue. One type that you’ve heard of is Chapter 7. Now, you want to know what you need to do to qualify for it. Here’s some more information.
Qualifying for Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy, you can’t have filed for it in the past eight years. Additionally, you can’t have filed for Chapter 13 bankruptcy in the previous six years. You must do individual or group credit counseling within 180 days before filing, as well as wait 181 days if you tried to file for Chapter 7 or Chapter 13 bankruptcy but your case was rejected. Additionally, you’ll need to show that the average of your monthly income in the past six months was lower than the median income for the same-sized household. You could also do a means test, which determines if you have enough disposable income to make a partial payment to your creditors.
Why File for Chapter 7 Bankruptcy?
Chapter 7 bankruptcy can rid of many different types of unsecured debt. You can file for bankruptcy, then work on rebuilding your credit. It can give you a fresh start when you have nowhere else to turn. In the long run, it could be the best thing to do to increase your credit score and make you look more attractive to lenders.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, will assist you with filing for Chapter 7 bankruptcy. You can call 937-254-3738 for a consultation. He has nearly three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.