Are You Eligible for the Fastest Road to Debt Relief?
Many people know that Chapter 7 bankruptcy is an opportunity to get debt relief but aren't sure whether they qualify. There are many rumors out there about who is eligible for Chapter 7, and many of these are based on misunderstandings.
At the locally-based Tucson law firm of Trezza & Associates, we can advise you on whether you qualify for Chapter 7 bankruptcy. Contact us to set up a free consultation with experienced Arizona bankruptcy lawyer Stephen Trezza.
Understanding the Chapter 7 Means Test
Before 2005, virtually anyone could file for Chapter 7 bankruptcy. Because they thought that some people were abusing the system, Congress voted that year to add a so-called "means test." Now, in order to qualify for Chapter 7, you need to meet one of two criteria:
- Household income: Your total household income for the past six months must be below the state median income for a household the same size as yours.
- Disposable Income: Any disposable income you have is insufficient to pay creditors a meaning percentage of the debt owed to them.
As it turns out, most people who are in a serious enough situation to consider filing Chapter 7 bankruptcy are eligible for Chapter 7.
If, for whatever reason, you do not qualify for Chapter 7, Chapter 13 bankruptcy may still be a useful option for reducing the burden of unsecured debts such as credit card debts.
Examining Your Personal Financial Circumstances
After Congress changed in the law in 2005, there was a lot of misinformation, and many people started to think it was virtually impossible to file Chapter 7 bankruptcy. If you have heard rumors like this, you should not be discouraged, because most people who need bankruptcy protection are eligible to file.
Our attorneys will carefully analyze your situation to determine whether you qualify for Chapter 7. We will only file if we have a valid argument in your favor.
We have helped many clients from many different backgrounds meet the qualifications and successfully file Chapter 7 bankruptcy. Contact us to discuss your specific circumstances.
