You ask, will I qualify for Chapter 7 Bankruptcy? And the answer is, yes, if your income is below the state’s median income and you do not have money left over after you pay your reasonable and necessary expenses. The idea of who qualifies to file Chapter 7 Bankruptcy (assuming you have not qualified a Chapter 7 Bankruptcy and received a discharge in the last 8 years) is largely based on your household income and expenses.
Simply put, if your income is below your state’s median income and you expend all your income on your monthly expenses, chances are you qualify to file Chapter 7 Bankruptcy. Never mind the question as to whether you should file Chapter 7 Bankruptcy, because of your assets, versus filing Chapter 13 Bankruptcy where not even non-exempt assets are lost to the estate.
You can qualify to file Chapter 7 Bankruptcy even though filing a Chapter 7 Bankruptcy would be painful in terms of loss of non-exempt assets. For example, suppose you earn 50k a year and you are a family of one. You certainly qualify to file Chapter 7 Bankruptcy. But now let us add one additional fact. Suppose you rent in Minnesota but own a condominium in Florida (non-homestead) that is worth 100k without any liens against it. Your interest in the non-homestead real estate in Florida is largely non-exempt.
If you file a Chapter 7 Bankruptcy in Minnesota, you will lose this condominium to the bankruptcy estate. The condominium will be sold and any exempt portion (due to a wild card exemption) is paid to debtor and the balance is used to pay your unsecured creditors. Do you qualify to file a Chapter 7 Bankruptcy? Answer: yes! However, filing Chapter 7 Bankruptcy may not be the most prudent move for you given your assets.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, when you are ready to get your life back, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did!
