Who Is Eligible for Bankruptcy?
Generally, individuals are eligible to file Chapter 7 bankruptcy if their current net income is fully consumed with regular monthly living expenses. Before filing a Chapter 7 case, however, our attorneys would analyze your assets and your exemptions, and review your financial history for the past six years to determine possible problem areas. Often our lawyers are able to file Chapter 7 bankruptcy for people, while allowing them to keep their homes, their vehicles, or a certain amount of cash.
The second eligibility requirement for chapter 7 is that they are either Under the median income for New York or can pass “the Means Test” (essentially a calculation of how much money you would have let over each month, using IRS standards for allowable expenses, rather than your actual expenses)
The third eligibility requirement is that you did not file for chapter 7 bankruptcy within the past 8 years
In Chapter 13 repayment plans, individuals can file for protection if they have some current income and have no more than $2,750,000 in total debt. They must be able to meet all future current payments to on mortgages, car loans and other secured obligations, plus being able to pay regular current living expenses. In addition, they must make a monthly payment to the bankruptcy trustee, to cover back payments due on mortgages, car loans, leases, taxes, and unsecured debts such as credit cards and loans.
Contact Our Staten Island Debt Relief Attorneys At Corash & Hollender, P.C.
We can help determine if you are eligible for bankruptcy protection. Contact us online or call 718-691-1669 to schedule an appointment to discuss your situation.