How to Qualify for Chapter 7 Bankruptcy
How to qualify for chapter 7 bankruptcy is a frequently asked question regarding bankruptcy. Individuals or businesses filing for bankruptcy should be aware of the two types of bankruptcies, namely chapter 13 and chapter 7. For any business with no viable future, Chapter 7 bankruptcy is the best option. Chapter 7 bankruptcy is typically used when a business has unmanageable debts. Individuals in corporations, partnerships, or sole proprietorships may file for this type of bankruptcy.
Attorney Robert Flessas explains in his YOUTUBE video “How to qualify for a chapter 7 bankruptcy” that in a chapter 7 bankruptcy, one’s debts are permanently discharged.
However, being in debt does not automatically preclude you from filing for chapter 7. This type of bankruptcy can be filed only once every eight years. Additionally, your income must meet the median income requirement. Apart from your household size and state of residence, the median income test is based on your average income over the last six months. A chapter 7 bankruptcy attorney can assist you in filing for bankruptcy by guiding you through the process and representing you in court.