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!
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!