Most people file Chapter 7 bankruptcy, because the three main reasons:
1. And ‘much faster than previous chapters. A little effort on my part, you can be throughout the process and the next 4-6 months.
2. It ‘easier to file. Not repeated visits to the court is required.
3. Not after payment. After the failure, it was decided that the fact is debt free. (Bankruptcy Act of 2005, not all debts can be calculated more consult your attorney before filling).
On the other hand, Chapter 7 is closed, the court decides you are entitled to submit an application or not. One of the main reasons why you may be excluded from file Chapter 7 is the income. If you happen to have enough to payoff some debts (after their stay allowed is calculated) so you may file Chapter 13 bankruptcy law.
How to check whether you can apply for?
The first thing you do is calculate the average income of the last six months and compare it with average income of the state you live in. You are not allowed in the file under Chapter 7 if your income seems to be the lover or the same as median, the state where you live
Where the average income is higher, and you still want to apply for Chapter 7 bankruptcy will have to go through a test called an economic needs test.
So what is evidence?
It is calculated on the basis of test results allowed the cost of living.
How do I calculate my cost of living and what can I say?
It’s actually quite easy to calculate. Get a month of average income and deduct the following eligible costs:
1) operating costs, transportation (gas), food, clothes. (Be sure to use those amounts to the IRS or the court not taken into account).
2) ensure the monthly payments as child support, car loans, mortgages and taxes.
When you’re with the calculation of average disposable income per month is the lover of $ 100, you have passed the means test and you have a fair chance of approval of bankruptcy, Chapter 7
However, if your disposable income seems to be higher (the figure most often quoted is $ 166, but may vary), it could open a Chapter 13 bankruptcy law. That is, unless you can prove that there are some special factors must be considered.
In the figures, $ 100 and $ 166, it is best to consult your attorney. Make sure you find a lawyer specializing in bankruptcy and credit repair and has a solid reputation.
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