A lot of people who live in and around Eden Prairie, Minnesota want to know if they qualify to file a Chapter 7 Bankruptcy. To qualify for a Chapter 7 Bankruptcy you must not have filed a previous Chapter 7 Bankruptcy (where you received a discharge) in a case filed in the previous 8 years. You also do not qualify for a Chapter 7 Bankruptcy discharge if you filed a Chapter 13 Bankruptcy within the previous 6 years (and where you received a Chapter 13 discharge).
Asset wise, you can own any amount of assets and qualify to file a Chapter 7 Bankruptcy. The issue of assets boils down to how much of your assets are what we call “exempt” and “non-exempt”? That is a topic for a different blog. In this blog, we simply focus on the question of whether you qualify to file a Chapter 7 Bankruptcy.
Income and expense wise, if you have the ability to make a payment back to your creditors (not counting any payments you are currently making on credit cards or other unsecured debt), you must do so. There are a lot of goofy calculations to determine (means test) whether you need to file a Chapter 13 Bankruptcy or if you qualify to file a Chapter 7 Bankruptcy, but the bottom line is always the same. If you have the ability to repay some of your debt, you must do so. Yes, the size of your income does make a difference. The more income, the more likely it is you will be required to file a Chapter 13 Bankruptcy instead of Chapter 7 Bankruptcy. But, in either bankruptcy, you get relief!
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT
When the time is right, or when you are ready to get your life back, reach out to Eden Prairie, Minnesota’s best bankruptcy law firm by going now to www.kainscott.com. You will be so glad you did!